Muda Yusuf Advocates for Lower Lending Rates Post MPR Cut

Dr. Muda Yusuf, the chief executive officer of the Centre for the Promotion of Private Enterprise (CPPE), called on commercial banks to reduce lending rates in response to the Central Bank of Nigeria's (CBN) new Monetary Policy Rate (MPR) of 23%, which was cut from 26.5% during the 307th Monetary Policy Committee meeting on September 22, 2026. Yusuf welcomed this 350 basis points reduction as a significant shift towards supporting economic growth and investment.

He noted that high financing costs have hindered businesses, particularly in sectors like manufacturing and agriculture. Yusuf stressed that the effectiveness of this policy change relies on banks adjusting their lending rates accordingly, as failure to do so would limit the policy's impact on investment and economic growth.

He also pointed out that while the cut is timely given the improving inflation trajectory, lower interest rates alone cannot ensure a sustainable recovery due to ongoing structural inflation pressures.