Manufacturers seek cheaper loans after central bank rate reduction
Nigerian manufacturers have welcomed the Central Bank of Nigeria’s decision to reduce its benchmark interest rate to 23%. They are now urging commercial banks to pass on the reduction by lowering lending rates, according to the Manufacturers Association of Nigeria, although no details were supplied on the size or timing of any expected cuts.
Nigerian manufacturers have welcomed the Central Bank of Nigeria’s decision to cut its benchmark interest rate to 23%. The sector is now calling on commercial banks to reduce the rates charged on loans, according to the source material. Manufacturers’ response links the central bank’s decision to their expectation that borrowing costs should also fall.
The supplied information does not state the previous benchmark rate, the size of the reduction, or when banks might adjust their lending rates. It also does not identify particular banks or provide details of manufacturers’ financing needs. The manufacturers’ position is therefore a call for transmission of the central bank’s rate decision to borrowers.
While the sector has welcomed the cut, the available information contains no confirmation that commercial lending rates have already changed.
This independently written report is based on information supplied by the named publisher. Vertrix News has not independently verified the source report.