The Central Bank of Nigeria (CBN) has suggested that commercial lending rates may soon fall, following early signs that inflation in the country is beginning to ease.
CBN Governor, Olayemi Cardoso, said on Wednesday that as prices of goods and services gradually stabilize, the cost of borrowing money from banks could also reduce. Lower interest rates would mean that businesses, especially small and medium-sized enterprises (SMEs), could access cheaper loans to expand, while households might find it easier to borrow for housing, farming, or education.
Nigeria has been battling high inflation for months, with rising food and fuel costs hitting ordinary families the hardest. But recent figures show that the pace of price increases is slowing, thanks to tighter monetary policies and stronger performance of the naira in the foreign exchange market.
Economists say cheaper lending rates could boost productivity and create jobs, but they caution that the benefits will only last if inflation continues to decline and government policies remain consistent.
For many Nigerians, the hope is that any drop in borrowing costs will translate into more affordable products, stronger businesses, and a healthier economy that works for everyone.
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