The Nigerian government is exploring the possibility of reducing interest rates as inflation gradually eases, Finance Minister and Coordinating Minister of the Economy, Wale Edun, has revealed. Speaking at the Abu Dhabi Sustainability Week, Edun praised the Central Bank of Nigeria (CBN) for its “excellent” progress in curbing inflation, which fell to 14.45 percent in November 2025.
Edun highlighted that the improvement in Nigeria’s macroeconomic stability is largely due to the monetary tightening policies deployed by the CBN over the past two years. “These measures have been critical in steering inflation downward while maintaining economic resilience,” he said.
Brandspur Banking News Desk reports that an interest rate reduction could provide significant relief to public finances, particularly given the pressures of rising debt-servicing obligations, fluctuating oil revenues, and an expanding fiscal deficit. Lower borrowing costs would help reduce the cost of government debt and ease fiscal strain, supporting broader economic stability.
In September 2025, the CBN had already implemented its first benchmark interest rate cut in three years, lowering it by 50 basis points to 27 percent. Analysts note that a further reduction could stimulate investment, ease corporate financing pressures, and support growth in the real sector.
Edun’s remarks come amid a broader discussion on Nigeria’s economic trajectory, as policymakers weigh options to sustain growth while balancing inflation control. Economists have cautioned that while headline inflation is declining, many Nigerians may not yet feel the full impact in everyday living costs, especially for food and fuel.
The Finance Minister reiterated that any decision on interest rates will be data-driven and contingent on continued moderation of inflation, signalling a cautious but proactive approach to monetary and fiscal policy.
