Inflation Decline Sparks Calls for CBN to Cut Interest Rates

By Diafa Doubra,

Nigeria’s consecutive decline in inflation has stirred fresh calls for the Central Bank of Nigeria (CBN) to lower interest rates in order to ease pressure on businesses and households.

According to the latest data from the National Bureau of Statistics (NBS), the inflation rate has dropped for the third month in a row, signalling that government policies aimed at stabilising the economy are beginning to take effect.

Economists argue that maintaining high interest rates at this stage could slow down growth, discourage investment, and burden small businesses. They are urging the CBN to consider a rate cut to stimulate production, create jobs, and reduce the cost of borrowing.

However, some financial analysts have cautioned against hasty decisions, noting that while inflation is easing, the economy remains fragile. They advised the CBN to adopt a balanced approach that sustains stability while encouraging growth.