Nigeria borrowing costs stay above 30% as CBN holds rates, economists urge cuts

The Central Bank of Nigeria's decision to maintain its benchmark rate keeps financing costs elevated, intensifying pressure from economists who argue that monetary easing is needed to support economic activity.

By Handelsavisen Newsroom · Automated 2026-07-22 10:25 UTC · 1 min read

The Central Bank of Nigeria (CBN) has kept its benchmark interest rate unchanged, leaving borrowing costs in the world’s largest African economy above 30%.

The decision to hold steady has reignited calls from economists for the Monetary Policy Committee (MPC) to begin cutting rates to stimulate growth and reduce the cost of capital for businesses and consumers.

This development comes as a significant majority of Nigerians are calling for lower interest rates ahead of the MPC’s upcoming meeting, according to a survey reported by The Punch.

With financing costs remaining at such elevated levels, the policy stance continues to weigh on investment and consumption.

Economists argue that the current high-rate environment is no longer justified given recent inflation trends, and they are urging policymakers to pivot toward easing to support economic activity.

The CBN’s latest move signals a cautious approach, prioritizing stability over immediate stimulus.

This development comes as a significant majority of Nigerians are calling for lower interest rates ahead of the MPC’s upcoming meeting, according to a survey reported by The Punch.