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The Central Bank of Nigeria (CBN) has urged financial institutions to increase financing to productive sectors of the economy, following its decision to cut the Monetary Policy Rate (MPR) from 26.5 per cent to 23 per cent.
The Director, Stakeholder Engagement and Institutional Relations Department of the CBN, Mrs Hakama Sidi-Ali, made the call on Tuesday at the CBN Special Day during the 21st Abuja International Trade Fair.
Sidi-Ali said the 350-basis-point reduction in the MPR was designed to stimulate productive activities while sustaining the bank’s efforts to bring inflation down to single digits.
“The Bank recently reset the Monetary Policy Rate from 26.5 per cent to 23 per cent and recalibrated the Standing Facilities Corridor to +50/-300 basis points around the MPR, to support productive activities without losing focus on bringing inflation down to single digits from its current position of 15.39 per cent,” she said.
She said the rate cut marked a shift towards monetary easing after an extended period of tight monetary policy aimed at containing inflation and stabilising the foreign exchange market.
According to her, the CBN, in collaboration with fiscal authorities, had implemented reforms aimed at strengthening macroeconomic stability, restoring investor confidence and supporting sustainable economic growth.
She said businesses were better positioned to plan, invest and expand when inflation moderated, exchange rates remained relatively stable and the financial system was sound.
“Resilient trade thrives in an environment of macroeconomic stability. Businesses plan and invest with greater confidence when inflation is moderated, exchange rates are relatively stable, and the financial system is sound,” Sidi-Ali said.
The CBN director urged financial institutions to continue supporting productive sectors, while calling on businesses to embrace innovation, improve governance and explore new markets.
“Financial institutions must continue to support productive sectors of the economy. Businesses must embrace innovation, improve governance, and explore new markets,” she added.
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Sidi-Ali also disclosed that Nigeria’s gross external reserves had exceeded $55 billion as of 18 September 2026, the highest level recorded in 18 years.
She attributed the improvement to increased foreign exchange inflows from remittances, investments and greater participation in the formal financial system. The director noted that the unification of the foreign exchange market had also enhanced stability, strengthened investor confidence and reduced market distortions.
Sidi-Ali identified the Payments System Vision 2028 and the ongoing banking sector recapitalisation exercise as other reforms aimed at strengthening the financial system. She said the apex bank would continue to implement reforms focused on price stability and financial system resilience while supporting increased competitiveness and sustainable economic growth.
On his part, the President of the Abuja Chamber of Commerce and Industry, Emeka Obegolu, called on the CBN to deepen access to affordable financing for Micro, Small and Medium Enterprises (MSMEs).
Obegolu said stronger collaboration between the CBN, financial institutions and the organised private sector would enable businesses to convert economic opportunities into sustainable enterprises and create more jobs.
He called for increased financing for agriculture, manufacturing, trade, technology and export-oriented businesses, noting that high operating costs and limited access to capital remained major constraints to businesses.
According to him, targeted financing, credit guarantees and innovative funding mechanisms could help businesses overcome the challenges and expand their operations.
“We encourage the CBN to continue strengthening initiatives that improve MSMEs’ access to affordable and sustainable financing, deepen financial inclusion, promote digital financial services and enhance the capacity of small businesses to access formal credit,” he said.
