The Business NG - February 27, 2025

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Small and Medium Enterprises (SMEs) across Nigeria are facing mounting challenges following the Central Bank of Nigeria’s (CBN) decision to keep the Monetary Policy Rate (MPR) at 27.5%. Business owners argue that the move is choking growth and making access to credit increasingly difficult.
The decision, announced after the Monetary Policy Committee (MPC) meeting, was driven by concerns over inflation, rising food prices, and the need to sustain macroeconomic stability. However, for SMEs already burdened by high loan costs and operational difficulties, the news has been met with frustration.
Across the country, small businesses—which constitute a significant portion of Nigeria’s economy—are struggling to secure financing for expansion, inventory restocking, and daily operations.
In Abuja, Nkechi Levy, an entrepreneur, voiced her frustration over the steep borrowing costs. "Getting loans from banks is nearly impossible now. The interest rates are too high, and many of us simply can’t afford them. How do they expect small businesses to survive?" she asked.
Jude, a shop owner in Wuse, shared a similar sentiment. "With these rates, even keeping my business afloat is a struggle. We need better access to affordable credit, or many businesses will shut down."
The impact of CBN’s policy decision is reverberating across the SME sector, raising concerns about long-term economic growth and job creation.