Amid the Central Bank of Nigeria’s decision to reduce the Monetary Policy Rate (MPR) from 26.5 percent to 23 percent, business owners have been urged to see the reduction as an opportunity to restructure expensive debts, reconsider stalled investments and position themselves for growth.
Oluwatosin Olatujoye, Group Chief Executive Officer of Zylus Group International, stated this recently while assessing the implications of the CBN decision, adding that the move is expected to influence borrowing costs, investment decisions and economic activity across the country.
According to him, the real benefit will depend on whether commercial lending rates come down, noting that affordable credit, strategic investment and financial discipline are critical to economic growth.
Olatujoye said that the 3.5-percentage-point reduction presents an opportunity for Nigerian businesses to review their financial positions, negotiate better loan terms and pursue viable expansion plans after a prolonged period of high borrowing costs.
He said that businesses should prioritise refinancing where commercially beneficial, strengthen cash-flow management and channel available capital into activities that improve productivity and generate sustainable returns.
“This is not simply about borrowing more money because the policy rate has declined. It is about understanding the cost of capital, identifying profitable opportunities and ensuring that every investment contributes to business growth,” he said.
The Zylus Group chief executive further noted that small and medium-sized enterprises could benefit from improved financing conditions through increased working capital, equipment acquisition, expanded distribution and greater production capacity. He added that these developments could support employment generation and strengthen the contribution of businesses to Nigeria’s economy.
He also identified real estate, manufacturing, agriculture, construction and technology as sectors with opportunities to benefit if lower monetary policy rates translate into more accessible commercial financing. In real estate, he said, reduced development and mortgage financing costs could encourage property investment, support housing delivery and stimulate activity across related industries.
However, he warned that the MPR reduction would have limited impact if commercial banks continued to charge prohibitively high lending rates.
“The real measure of this decision is what happens to businesses after the announcement. If credit remains expensive, companies will continue to postpone investments, struggle with working capital and limit their expansion plans,” he said.
He urged businesses with existing high-cost loans to engage their lenders on possible restructuring, while cautioning them to assess the total cost of refinancing, including fees and repayment periods, before accepting new terms.
Olatujoye further called on the CBN, financial institutions and policymakers to strengthen the transmission of monetary policy benefits to productive enterprises, while sustaining efforts to address inflation, infrastructure deficits and other factors that increase the cost of doing business.
He advised business leaders to complement any improvement in financing conditions with sound financial records, disciplined spending, market research and realistic investment projections.
According to him, the long-term success of the rate reduction should be measured by its ability to improve access to credit, stimulate productive investment, expand businesses and create jobs.
“Businesses must prepare to turn changing economic conditions into opportunities. Sustainable growth will come from combining access to capital with financial discipline, strategic planning and effective execution,” he said.
The CBN’s reduction of the MPR from 26.5 per cent to 23 per cent marks a shift in monetary policy conditions, but its ultimate effect on the real economy will depend on how quickly and substantially the adjustment influences lending rates, private-sector investment and business activity.
