The Central Bank of Nigeria (CBN) Monetary Policy Committee has decided to further raise interest rate by 50 basis points to 27.25%.
The Governor of the CBN, who is the Chairman of the MPC, disclosed this at the end of the MPC meeting held in Abuja.
The apex bank further increased the Cash Reserve Ratio (CRR) of commercial banks by 500 basis points from 45% to 50%. This decision is set to impact micro, Small, and Medium Enterprises (MSMEs) in Nigeria.
The CBN’s Monetary Policy Committee (MPC) made the announcement on September 24, 2024, citing the need to control rising inflation and maintain economic stability. This is the fifth consecutive interest rate hike this year.
What this means For MSMEs
For MSMEs, this increase in interest rate means higher borrowing costs, which can slow down investment and growth, However, it’s essential to note that this move aims to combat inflation, which has been a significant challenge for businesses in Nigeria.”
The increased interest rate will affect MSMEs in various ways
- Increased borrowing costs
- Reduced consumer spending
- Higher production costs
Stay tuned for further updates…
