SMEs Struggle as High Interest Rates Stifle Growth

Small and Medium Enterprises (SMEs) in Nigeria are increasingly struggling due to high lending rates that exceed 30%, leading to calls from economists, financial analysts, and business leaders for the Central Bank of Nigeria (CBN) to ease its tight monetary policy. The Monetary Policy Committee (MPC) maintained the Monetary Policy Rate (MPR) at 26.5% during its 306th meeting on July 20 and 21, 2026, which has kept commercial lending rates above 30%.

Thomas Amusan, CEO of Kwik Consulting, stated that the CBN should consider a gradual shift toward monetary easing as inflation trends become more favorable. Sharon Nwosu, CEO of a manufacturing company in Abuja, highlighted that many SMEs are effectively excluded from formal credit markets due to these high rates, which force businesses to spend more on servicing debt rather than investing in growth.

Economic analyst Hassan Oyeleke emphasized that maintaining price stability should remain the CBN's priority, suggesting that monetary easing could be considered once inflation shows a consistent downward trend.