Following the Central Bank of Nigeria’s (CBN) decision on Tuesday to keep interest rates at 27%, experts have urged banks to increase lending to the nation’s micro, small, and medium-sized businesses. According to Daily Trust, the Central Bank of Nigeria’s Monetary Policy Committee maintained interest rates at 27% on Tuesday in response to a decline in inflation.In response, Prof. Uche Uwaleke, Executive Director of the Institute of Capital Markets at Nasarawa State University in Keffi, stated that the MPC’s choice to keep the MPR at 27% while maintaining the CRR and Liquidity Ratio is a positive move. According to him, the decision is made in light of the standing facility corridor’s narrowing and asymmetry from +250/-250 bps to +50/-450 bps, which effectively lowers the CBN lending cap and widens the gap on the deposit end.
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