Central Bank of Nigeria (CBN) Governor Olayemi Cardoso has hinted that lending rates in the country may ease in the near future as inflationary pressures subside and capital becomes more efficiently allocated.
Speaking at the Eurocham Nigeria C-Level Forum in Lagos, Cardoso observed that commercial loan rates — currently ranging between 32% and 36% — could face downward pressure as macroeconomic indicators improve.
“There was a substantial potential for interest rates to decrease in the future,” he stated.
During the session, moderated by Andreas Voss of Deutsche Bank Nigeria, Cardoso laid out the CBN’s priorities, which include consolidating macroeconomic stability, recapitalising the banking sector, and enhancing Nigeria’s appeal to global investors.
Although inflation remains high, Cardoso noted that it has been gradually slowing due to ongoing policy coordination.
“It is decreasing as a consequence of collective efforts. It is anticipated that the advantages of the CBN tightening posture will persist. We will protect the stability that has been re-established in the financial system with the utmost zeal,” he said.
He stressed that the CBN remains focused on keeping the financial system resilient while tackling inflation.
“Our primary objective is to maintain that stability while simultaneously addressing inflation and ensuring that the financial system is sufficiently resilient to facilitate corporate lending and investment,” he added.
On banking sector reforms, Cardoso reaffirmed the necessity of recapitalisation, describing it as crucial for creating institutions robust enough to withstand shocks and finance growth. The CBN has already instructed banks to boost their minimum capital base to strengthen their ability to support economic activities.
Cardoso also pointed to the growing role of digital solutions in expanding financial access, reducing poverty, and nurturing the fintech space. He emphasised that financial inclusion remains central to sustainable development goals.
He further praised the stronger collaboration between the CBN and fiscal authorities — including the Ministries of Finance, Industry, Trade and Investment, and the Budget Office — calling it vital for driving reforms and maintaining long-term stability.
Fresh data from the National Bureau of Statistics (NBS) revealed that headline inflation in Nigeria slowed slightly to 21.88% in July 2025, down from 22.22% in June.
Compared to July 2024, when inflation was 33.40%, the current figure represents an 11.52% year-on-year drop. Urban inflation stood at 22.01% in July 2025, well below the 35.77% recorded a year earlier.
