A member of the Monetary Policy Committee (MPC) at the Central Bank of Nigeria (CBN) has called on the regulator to actively pressure commercial banks to reduce their lending rates following the recent recapitalization exercise.
The intervention highlights growing impatience among policymakers and market participants who argue that the infusion of capital into the banking sector should directly translate into cheaper credit for businesses and consumers.
The push for lower rates comes as the Nigerian financial sector attempts to stabilize after a period of high volatility and tight liquidity.
While recapitalization aims to strengthen bank balance sheets and improve risk absorption, the ultimate test of its success lies in the cost of credit passed on to borrowers.
If banks retain high spreads despite stronger capital bases, the intended stimulus effect on economic activity will be muted.
This development aligns with broader calls from financial experts for a more accommodative monetary stance.