LCCI Calls for Lower Lending Rates After CBN Rate Cut

The Lagos Chamber of Commerce and Industry (LCCI) has called on commercial banks to reduce lending rates and enhance credit availability for businesses after the Central Bank of Nigeria (CBN) cut its benchmark interest rate by 350 basis points, lowering the Monetary Policy Rate (MPR) from 26.5% to 23% during its 307th meeting. LCCI Director-General Chinyere Almona stated that the impact of the rate cut would be limited if banks do not adjust their lending rates accordingly.

The LCCI expressed concern that banks still determine loan pricing based on various factors, which could keep lending rates high despite the MPR reduction. The chamber identified high operating costs and risks, including energy and logistics expenses, as significant challenges for businesses.

It urged the CBN to monitor banks' responses to the rate cut and called for improved credit guarantees and alternative lending mechanisms to support small businesses. The LCCI emphasized the importance of directing increased liquidity towards sectors that can boost production and employment.