Private Sector Groups Demand Cheaper Loans as CBN Cuts Rate to 23%

LAGOS, Nigeria — September 24, 2026

Organised private-sector groups have welcomed the Central Bank of Nigeria’s decision to cut the Monetary Policy Rate (MPR) from 26.5% to 23%, but say the real test is whether the move will lead to cheaper and more accessible loans for businesses. 

The Lagos Chamber of Commerce and Industry (LCCI) said the 350-basis-point reduction could improve financing conditions, especially for micro, small and medium-sized enterprises.

However, LCCI Director-General Chinyere Almona cautioned that the CBN’s rate cut does not automatically mean commercial banks will immediately reduce their lending rates.

Businesses still face other pressures

According to the LCCI, Nigerian businesses continue to deal with high energy and logistics costs, exchange-rate risks, expensive inputs, infrastructure problems, insecurity and regulatory costs.

The chamber therefore called for stronger credit-guarantee and risk-sharing schemes to encourage banks to lend to viable businesses, particularly SMEs.

It also recommended greater use of cash-flow-based lending, credit scoring and movable assets instead of relying only on traditional collateral.

NECA raises similar concern

The Nigeria Employers’ Consultative Association (NECA) also welcomed the CBN’s decision but warned that the benefit could remain limited unless the reduction is transmitted to actual borrowing costs.

NECA also pointed to the 45% Cash Reserve Ratio for deposit money banks as an indication that monetary conditions remain relatively tight despite the MPR reduction.

The Centre for the Promotion of Private Enterprise (CPPE) similarly said the rate cut could support investment and reduce financing pressure in sectors such as manufacturing, agriculture, construction and logistics. But it stressed that effective transmission to businesses will be critical.

What businesses are watching

The key question now is simple:

Will the CBN’s 23% policy rate translate into cheaper loans for Nigerian businesses?

For many SMEs, the answer will depend not only on the MPR but also on banks’ funding costs, risk assessments, collateral requirements and the wider business environment.

MONAFRIKA WATCH

The organised private sector is welcoming the CBN’s move, but business groups are calling for the rate cut to move from policy documents to the real economy.

For entrepreneurs and SMEs, the real impact will be felt when financing becomes easier to obtain and less expensive.

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