‘CBN rate cut may ease borrowing costs’

The Managing Director of Coleman Technical Industries, George Onafowokan, commented on the Central Bank of Nigeria's recent monetary policy rate cut, referring to it as a "reset" to align with market conditions. The adjustment has resulted in commercial lenders providing loans at around 22 to 23 percent, as opposed to the previous 26.5 percent rate.

Onafowokan attributed this shift to commercial banks increasing their capital bases from N50 billion to N200 billion (or N500 billion for larger banks), which boosted liquidity in the financial system. Consequently, banks have been more competitive in lending, driving market rates below the CBN's previous policy rate. While the full impact of the rate change may take two to three months to fully manifest, Onafowokan remains confident that it will have a positive effect on the economy.