CBN rate cut may ease borrowing costs, expert says

Coleman Technical Industries CEO George Onafowokan says the CBN’s decision to cut the Monetary Policy Rate to 23% could gradually reduce borrowing costs across Nigeria. The Managing Director of Coleman Technical Industries Limited, George Onafowokan, says the Central Bank of Nigeria’s decision to reduce the Monetary Policy Rate from 26.5 per cent to 23 per cent could gradually...

• Coleman Technical Industries CEO George Onafowokan says the CBN’s decision to cut the Monetary Policy Rate to 23% could gradually reduce borrowing costs across Nigeria.
• The Managing Director of Coleman Technical Industries Limited, George Onafowokan, says the Central Bank of Nigeria’s decision to reduce the Monetary Policy Rate from 26.5 per cent to 23 per cent could gradually ease borrowing costs across the economy.The CBN’s Monetary Policy Committee approved the 350-basis-point reduction at its September meeting while retaining the Cash Reserve Requirement for deposit money banks at 45 per cent.
• Onafowokan said commercial lending rates had already begun adjusting lower as stronger bank capitalisation increased competition for borrowers.He said the full impact may take two to three months to become clearer, while manufacturers and business groups have also urged banks to pass the lower policy rate on to customers through cheaper credit.