LCCI Demands Cheaper Loans for Businesses Following CBN’s Historic 350-Basis-Point Rate Cut

The Lagos Chamber of Commerce and Industry (LCCI) and key stakeholders within the Organised Private Sector have called on commercial deposit banks to immediately lower lending rates following the Central Bank of Nigeria’s (CBN) decision to slash its benchmark interest rate.

The CBN announced a substantial reduction of the Monetary Policy Rate (MPR) by 350 basis points, bringing it down from 26.5 percent to 23 percent. The aggressive adjustment follows three consecutive months of easing headline inflation, which dropped to 15.39 percent. Financial analysts and business leaders have hailed the move as a long-awaited shift toward stimulating production and easing liquidity constraints.

Reacting to the development, LCCI President Leye Kupoluyi described the policy adjustment as a vital window of opportunity for businesses, particularly Micro, Small, and Medium Enterprises (MSMEs) that have battled punishing financing costs. However, the chamber stressed that the apex bank’s policy adjustment must directly translate into lower interest rates at commercial banking counters to make an actual impact on the real economy.

“Monetary easing must be matched by measures that reduce lending risk and improve businesses’ capacity to borrow and repay,” Kupoluyi stated, urging banks to pass the reduction down to both new and existing loan facilities.

Echoing similar sentiments, the Manufacturers Association of Nigeria (MAN) and other economic commentators noted that high borrowing expenses have previously constrained industrial expansion. While welcoming the 23 percent benchmark, stakeholders underscored that complementary interventions addressing structural bottlenecks—such as erratic power supply, high logistics overheads, and multiple taxation—remain essential to fully unlock productivity and investment across manufacturing and agricultural sectors.