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.

By Philippine

philippineobetoduru@gmail.com

08034905774

Dangote Petroleum Refinery has defended its recent petrol sales policy, insisting that its decision to resume the sale of Premium Motor Spirit (PMS) in naira was driven by the need to restore stability in Nigeria’s downstream petroleum market after some fuel importers allegedly withheld products in anticipation of higher prices.

The refinery said its pricing decisions were based on prevailing market realities and should not be interpreted as an attempt to dominate the market or disadvantage independent marketers. Instead, it maintained that the objective was to ensure uninterrupted fuel supply while promoting fair competition in Nigeria’s deregulated petroleum sector.

According to the company, after temporarily introducing dollar-denominated pricing due to challenges in sourcing sufficient crude oil under the Federal Government’s naira-for-crude arrangement, it returned to naira sales once conditions improved. The refinery argued that continuing to buy crude in dollars while selling refined products in naira had become financially unsustainable, forcing it to review its pricing structure.

Management further alleged that some fuel importers delayed releasing existing inventories while awaiting higher pump prices, a development it said contributed to artificial supply tightness in parts of the country. The refinery noted that resuming naira-denominated sales was intended to discourage speculation, improve product availability, and stabilize distribution across the market.

Dangote Refinery stressed that it remains committed to supplying petroleum products to all qualified marketers on transparent and non-discriminatory terms. The company added that its pricing reflects international crude oil costs, exchange rate movements, logistics expenses, and other operational realities affecting refining and distribution.

Industry observers say the refinery’s explanation comes amid renewed debate over fuel pricing following recent adjustments in ex-depot prices. They noted that the refinery has become a major supplier of petrol in Nigeria, making its pricing decisions increasingly influential on retail pump prices nationwide.

The development has also reignited discussions over the implementation of the Federal Government’s naira-for-crude policy, which was introduced to reduce pressure on foreign exchange demand by allowing domestic refiners to purchase crude oil in the local currency. However, refinery officials have argued that inadequate crude allocations under the arrangement forced them to import additional crude at international market prices, increasing operating costs.

Energy analysts believe the return to naira sales could improve liquidity in the domestic fuel market and reduce pressure on marketers seeking foreign exchange for product purchases. Nevertheless, they caution that sustained stability will depend on consistent crude oil supply to local refineries, transparent market competition, and effective regulatory oversight.

The Dangote Refinery, Africa’s largest single-train refinery, has become central to Nigeria’s efforts to reduce dependence on imported petroleum products and strengthen domestic refining capacity. Recent expansion plans are expected to further boost production and support long-term energy security for Nigeria and the wider African market.

By Philippine Duru

philippineobetoduru@gmail.com

08034905774

Germany has reaffirmed its commitment to strengthening economic and investment cooperation with Nigeria, announcing plans to deepen trade, industrial collaboration and private sector partnerships as bilateral trade between both countries grew by approximately 10 per cent over the past year.

The commitment comes amid renewed efforts by both countries to expand commercial relations and unlock fresh investment opportunities in key sectors of the Nigerian economy, including manufacturing, renewable energy, agriculture, infrastructure, digital technology and skills development.

Speaking during a high-level engagement with Nigerian government officials and business leaders, German representatives described Nigeria as one of Germany’s most important economic partners in sub-Saharan Africa, noting that the country’s large consumer market, youthful population and ongoing economic reforms present significant opportunities for foreign investors.

Germany disclosed that more than 100 German companies currently operate in Nigeria, with investments spanning manufacturing, engineering, pharmaceuticals, logistics, energy, financial services and industrial equipment. Many of the firms have maintained long-term operations in the country, contributing to employment generation, technology transfer and local capacity development.

According to the German delegation, the 10 per cent increase in bilateral trade reflects the growing confidence of businesses in the economic relationship between both nations despite global economic uncertainties, supply chain disruptions and inflationary pressures experienced over the past year.

The delegation stressed that Germany remains committed to supporting Nigeria’s economic diversification agenda through increased investments, technical cooperation and enhanced trade facilitation, while encouraging reforms aimed at improving the ease of doing business and attracting greater foreign direct investment.

“Nigeria remains a strategic partner for Germany in Africa. We see enormous opportunities for expanding cooperation in trade, industrial development, renewable energy, innovation and sustainable economic growth,” the delegation said.

The German government also reiterated its readiness to collaborate with Nigeria on energy transition initiatives, vocational education, digital innovation and climate-resilient infrastructure, areas considered critical to the country’s long-term economic development.

Nigerian officials welcomed the renewed commitment, describing Germany as a reliable development and investment partner whose companies have continued to demonstrate confidence in the Nigerian economy.

They noted that the Federal Government is implementing reforms aimed at improving macroeconomic stability, strengthening the investment climate and creating a more competitive business environment capable of attracting quality investments from global partners.

The officials expressed optimism that deeper collaboration with Germany would boost industrial production, create jobs, enhance technology transfer and expand export opportunities for Nigerian businesses.

Economic analysts said the strengthening partnership between both countries is expected to further stimulate trade flows, encourage new investments and reinforce Nigeria’s position as a leading investment destination in Africa.

They added that with more than 100 German companies already operating in Nigeria, expanding economic cooperation could accelerate industrialisation, support local value addition and contribute to sustainable economic growth, particularly as Nigeria seeks to diversify its economy beyond oil and strengthen its manufacturing and non-oil export sectors.