The CPPE called on Nigerian banks to cut lending rates following the CBN’s biggest MPR reduction since 2006CPPE said cheaper credit could boost investment, production and job creation in sectors like manufacturing, agriculture and logisticsThe organisation warned that the policy cut would have little effect if commercial banks failed to pass on lower borrowing costs to businessesPAY ATTENTION: Find it fast with our new search feature at Legit.ng! Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.The Centre for the Promotion of Private Enterprise (CPPE) has called on Nigerian commercial banks to reduce their lending rates following the Central Bank of Nigeria’s (CBN) decision to cut the Monetary Policy Rate (MPR) by 350 basis points to 23%.In a statement signed by its CEO, Dr Muda Yusuf, on Tuesday, September 22, CPPE described the CBN’s move as a positive development for the economy and said the reduction in the benchmark rate should flow through to businesses facing high financing costs.CPPE says the CBN’s MPR reduction should translate into cheaper loans for Nigerian businesses. Photo: Muda Yusuf Source: FacebookThe organisation said lower borrowing costs could ease pressure on business cash flows, encourage investment and support working capital, particularly in sectors such as manufacturing, agriculture, construction and logistics.PAY ATTENTION: From breaking news to viral moments. Follow Legit.ng on Instagram!CPPE calls for lending rate adjustmentCPPE said the adjustment in the benchmark rate must be reflected in the pricing of credit across the banking system for the policy to have a meaningful effect.The organisation said:”The CPPE expects banks to reflect the new monetary policy environment in the pricing of credit.
Lending rates on both new and existing facilities should progressively adjust downwards.”It added that keeping commercial lending rates high despite the MPR cut would neutralise the intended benefits.CPPE said:”Without meaningful transmission to borrowers, the impact of the policy adjustment on investment and economic growth would be limited.”CBN’s largest rate cut in nearly two decadesThe CBN made the 350-basis-point cut at the 307th meeting of the Monetary Policy Committee (MPC) held in Abuja, bringing the MPR to 23%.The committee also adjusted the corridor around the MPR to +50 basis points and -300 basis points.The CBN retained the Cash Reserve Requirement (CRR) for commercial banks at 45%, with merchant banks remaining at 16%. The 75% CRR on non-Treasury Single Account public sector deposits was also unchanged.The CBN’s MPR now stands at 23% after a 350-basis-point reduction by the MPC. Photo: CBN Source: Getty ImagesThe 350-basis-point reduction is the largest single cut to the benchmark rate since December 2006, when the CBN reduced the MPR by 400 basis points from 14% to 10%, followed by a further 200-basis-point cut in June 2007.CPPE said the real measure of the policy’s success would depend on how quickly banks pass the reduction on to borrowers, with businesses operating on tight margins and long investment cycles standing to benefit the most from more affordable credit.CPPE advises govt against new tax on sugar-sweetened beveragesEarlier, Legit.ng reported that the Centre for the Promotion of Private Enterprise (CPPE) has warned against plans to impose additional taxes on sugar-sweetened beverages (SSBs).CPPE told the government that such a move could harm Nigeria’s manufacturing sector and slow economic recovery.The position comes amid calls by Corporate Accountability and Public Participation Africa (CAPPA). Source: Legit.ng Dave Ibemere (Senior Business Editor) Dave Ibemere is a senior business editor at Legit.ng.
He is a financial journalist with over a decade of experience in print and online media. He also holds a Master’s degree from the University of Lagos. Fellow, MTN Pan African Media Innovation(2026), Member of the Nigerian Institute of Public Relations and other media think tank groups. He previously worked with The Guardian, BusinessDay, and headed the business desk at Ripples Nigeria.
Email: dave.ibemere@corp.legit.ng. CBN – Central Bank Of NigeriaZenith Bank Uae Funny text messages Demetress bell Trust message Germany
