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CBN prioritizing price stability

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By Philippine Duru

philippineobetoduru@gmail.com

08034905774

 

 

Nigeria’s maximum lending rate declined to 33.16 percent in June 2026, offering a measure of relief to businesses and consumers seeking access to bank credit amid the country’s high-interest-rate environment.

 

The latest figures indicate a moderation in borrowing costs after months of elevated lending rates, reflecting the gradual adjustment by commercial banks following the Central Bank of Nigeria’s (CBN) decision to retain the Monetary Policy Rate (MPR) at 26.5 percent.

 

The decline is expected to provide some breathing space for manufacturers, small and medium-sized enterprises (SMEs), corporate borrowers and households that have struggled with the rising cost of financing over the past year.

 

Although the reduction is relatively modest, economists say it signals that monetary conditions may be beginning to stabilize after an aggressive tightening cycle aimed at curbing inflation and supporting exchange rate stability.

 

Banks have continued to review their lending portfolios in response to the CBN’s policy stance, with many gradually adjusting interest rates in line with changing market conditions, liquidity levels and funding costs.

 

The CBN has maintained a tight monetary policy over the past two years as part of broader efforts to contain inflation, stabilize the naira and attract investment into the Nigerian economy. While the strategy has helped strengthen macroeconomic stability, it has also pushed borrowing costs to multi-year highs, making access to affordable credit increasingly difficult for businesses.

 

Industry operators say the easing in the maximum lending rate could encourage fresh investments, particularly among businesses looking to expand operations, purchase equipment or increase production capacity.

 

Manufacturers have repeatedly argued that high financing costs remain one of the biggest obstacles to industrial growth, noting that expensive loans reduce profitability, discourage expansion and weaken the competitiveness of locally produced goods.

 

Small business owners have also expressed concern over elevated lending rates, saying access to affordable financing remains critical to supporting entrepreneurship, job creation and economic recovery.

 

Financial analysts believe that while the latest decline is encouraging, lending rates are likely to remain relatively high as long as inflationary pressures persist and the CBN maintains its restrictive monetary policy stance.

 

According to analysts, commercial banks continue to factor inflation expectations, exchange rate risks, operating costs and credit risks into their loan pricing decisions, limiting the pace at which lending rates can decline.

 

The decision by the Monetary Policy Committee to leave the benchmark interest rate unchanged at 26.5 percent has been interpreted by many market participants as a signal that the apex bank is prioritizing price stability while closely monitoring inflation and other macroeconomic indicators before considering any monetary easing.

 

Economists note that a sustained decline in inflation would be a key condition for lower lending rates in the coming months, as it would create room for the CBN to gradually ease monetary policy without undermining economic stability.

 

Businesses are also hoping that improved liquidity in the banking system, stronger foreign exchange inflows and continued economic reforms will support further reductions in borrowing costs, making credit more accessible to productive sectors of the economy.

 

Despite the latest improvement, analysts caution that Nigeria’s lending rates remain among the highest in emerging markets, underscoring the need for continued reforms to improve financial sector efficiency, strengthen competition among banks and expand access to affordable financing for businesses and households.

 

The decline in the maximum lending rate nevertheless represents a positive development for the economy, raising expectations that, if sustained, lower borrowing costs could stimulate private sector investment, boost production, support employment and contribute to stronger economic growth in the months ahead.

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Business

North African Airline incurs Nigeria’s wrath

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By Philippine Duru

philippineobetoduru@gmail.com

08034905774

 

 

Nigeria has warned EgyptAir to modernise the aircraft deployed on its Nigerian routes, stressing that continued use of ageing planes could affect the airline’s operations in the country.

The Minister of Aviation and Aerospace Development, Festus Keyamo, gave the warning during a bilateral meeting with his Egyptian counterpart, Sameh El-Hefny, on the sidelines of the ongoing El-Alamein International Airshow (EIAS 2026) in Egypt.

According to a statement issued by Keyamo’s media aide, Tunde Moshood, the meeting focused on improving air connectivity between Nigeria and Egypt and strengthening cooperation between the two countries’ civil aviation authorities.

The discussions also covered the expansion of technical and professional capacity, as well as opportunities for greater collaboration among airlines, airports, regulators and other aviation stakeholders.

Keyamo specifically urged EgyptAir to deploy newer-generation aircraft on its Nigerian routes, rather than continuing with what Nigeria considers ageing aircraft.

“The minister also used the engagement to emphasise the need for a stronger and more modern fleet deployment by EgyptAir on its Nigerian routes,” Moshood said.

He said Keyamo urged the airline’s management to move away from the continued deployment of ageing aircraft and prioritise newer-generation aircraft in the Nigerian market.

According to the minister, fleet modernisation was essential to improving passenger experience, operational efficiency and the airline’s competitiveness.

Keyamo further stressed the strategic importance of Nigeria-Egypt aviation relations, noting that both countries occupy important positions within Africa’s aviation ecosystem.

He reaffirmed Nigeria’s commitment to expanding strategic international partnerships to improve air connectivity, promote tourism and trade, support airline growth and deliver greater value to passengers and the aviation industry.

The Nigerian delegation also expressed the country’s readiness to work with Egypt’s Ministry of Civil Aviation to identify areas of mutual cooperation, particularly within the framework of the Single African Air Transport Market (SAATM).

Responding, El-Hefny welcomed the engagement and reaffirmed Egypt’s commitment to deepening aviation cooperation with Nigeria.

He called for closer collaboration between the two countries to advance air transport development and strengthen links between their aviation industries.

The Egyptian minister also advocated stronger institutional cooperation between the African Civil Aviation Commission (AFCAC) and the League of Arab Civil Aviation (LACA).

“Enhanced collaboration between the two regional aviation bodies could promote stronger partnerships and facilitate greater cooperation among African and Arab States,” El-Hefny said.

The meeting ended with both ministers reaffirming their commitment to sustained dialogue, stronger institutional cooperation and initiatives aimed at delivering tangible benefits to the aviation sectors of Nigeria and Egypt.

 

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₦10m monthly made from akara and bread business -Umo Eno

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Philippine Duru

philippineobetoduru@gmail.com

08034905774

 

 

 

Akwa Ibom State Governor, Umo Eno, has recounted his early experience in entrepreneurship, revealing that he once made not less than ₦10 million in a month from selling akara and bread.

Eno, who spoke while reflecting on his journey before entering public service, said the business experience played an important role in shaping his understanding of enterprise, hard work and wealth creation.

According to the governor, he started from a modest venture involving the sale of akara and bread before gradually expanding his business activities.

“I started selling akara and bread. I made not less than ₦10m in a month,” Eno said.

The governor’s account highlights the entrepreneurial path he pursued before rising through the ranks in business and eventually becoming governor of Akwa Ibom State.

Eno has frequently emphasised the importance of entrepreneurship and economic empowerment, particularly as a means of creating opportunities for young people and reducing dependence on government employment.

His recollection of the akara and bread business also underscored his view that small businesses, when properly managed and supported, can grow into significant sources of income and employment.

The governor’s comments come amid growing conversations around entrepreneurship, youth empowerment and the need to create sustainable livelihoods in Nigeria, where many young people are turning to small and medium-scale enterprises to earn a living.

Eno has continued to advocate policies and initiatives aimed at expanding economic opportunities and encouraging residents to become self-reliant through productive ventures.

His story of moving from selling akara and bread to occupying the highest political office in Akwa Ibom has also been presented as an example of how entrepreneurship, persistence and business experience can shape an individual’s journey to leadership.

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Business

All share index gains about 0.81% as NGX rebounds

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The Nigerian Exchange Limited (NGX) rebounded last week, with the All-Share Index (ASI) gaining about 0.81 per cent to close at 241,298.47 points, as renewed investor interest in oil and gas and banking stocks lifted market sentiment.

 

The week’s gain translated into an estimated ₦1.29 trillion increase in market capitalisation, pushing the value of listed equities to about ₦155.83 trillion.

 

With the latest appreciation, the NGX’s year-to-date return remained strong at approximately 55 per cent, underscoring the market’s substantial gains despite intermittent periods of profit-taking and volatility.

 

The recovery was largely driven by buying interest in oil and gas and banking stocks, with Seplat Energy among the notable gainers during the week.

 

Market sentiment also received a boost from developments in Nigeria’s international financial-market standing. FTSE Russell confirmed the country’s reclassification to Frontier Market status, effective September 21, 2026, a move expected to influence international investor positioning toward Nigerian equities.

 

Further support came from Moody’s decision to revise Nigeria’s outlook to positive, reinforcing expectations that ongoing economic and fiscal reforms could improve the country’s credit profile.

 

Despite the positive performance, trading activity was relatively subdued, partly reflecting the shortened trading week. Market volume declined as investors adopted a more cautious approach amid prevailing economic uncertainties and profit-taking pressures.

 

Analysts said the latest rebound highlights continued investor appetite for fundamentally strong sectors, although the sustainability of the market’s upward trajectory will depend on macroeconomic conditions, corporate earnings, foreign investor participation and policy developments.

 

As investors enter a new trading week, attention is expected to remain on the performance of banking and energy stocks, while the implications of Nigeria’s forthcoming Frontier Market reclassification could further shape sentiment and capital flows into the equities market.

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