CPPE Urges Banks to Cut Lending Rates After CBN Rate Drop

The Centre for the Promotion of Private Enterprise (CPPE) has called on Nigerian banks to reduce their lending rates in light of the Central Bank of Nigeria's (CBN) recent 350-basis-point cut in the Monetary Policy Rate (MPR). The MPR was lowered from 26.5 percent to 23 percent during the CBN's 307th Monetary Policy Committee meeting held on September 21 and 22, 2026.

Muda Yusuf, the Chief Executive Officer of CPPE, stated that this reduction is crucial for the real sector, where high financing costs have hindered investment, production, working capital, and job creation. Yusuf noted that the economic benefits of the MPR cut would largely depend on how quickly banks adjust their lending rates.

He expects banks to reflect the new monetary policy environment in their credit pricing, advocating for a progressive downward adjustment of lending rates on both new and existing facilities.