Business
CBN Targets Higher Lending Rates
Participants at the Airport Business Summit and Expo in Abuja, recently.
The Central Bank of Nige
ria (CBN) has projected that lending rates would go up in the coming months as domestic and international headwinds continue to undermine efforts aimed at keeping the nation’s inflation rate at single digit level.
The CBN Governor, Mr Godwin Emefrele, made this known during an interview with journalists at the ongoing world Bank/International Monetary Fund (MF), spring meetings in Washington.
Emefiele, stated that the situation where the inflation rate was higher than the Monetary Policy Rate, (MPR) or benchmark lending rate, was not an acceptable model.
The Nigerian apex bank boss, pointed out that despite the current domestic and global fiscal headwinds affecting the economy negatively, the CBN world continue to do everything reasonable to stimulate broad-based growth of the economy through innovative monetary policy measures.
He said, CBN would focus its monetary support measures on critical sectors such as agriculture and mining that have the potential of boosting domestic production and by implication, help in the efforts to sustain macroeconomic stability and inclusive growth.
He added that the present shocks being experienced by oil exporting countries could be averted through the diversification of the economies and described the drive by the government to diversify the economic base as a step in the right direction.
“Practically, all are facing the challenges and everybody is looking at the possibility of diversifying their economies from being over-reliant on oil. So, obviously we are on the right course, but the challenges are still there not just for Nigeria but for different countries in the world”, he said.
Furthermore, he said”, what is important is that I reemphasise that we are on the right course by saying we need to continue to diversify our economy and I think for Nigeria, I see light at the end of the tunnel because we have a couple of Nigerian investors that have embraced the diversification of the Nigerian economy”.
On the increase in inflation rate, he said, “truly, Nigerians expect that if they want to access fund they should do so at a low interest rate but, of course, you will agree with me that with the increase in inflation rate from about 11.3 per cent that it was in February to almost about 12.4 per cent in March, naturally what you find is that interest rate will still have to go up sort of because when you have the MPR below inflation rate it is not a model that is acceptable. Interest rate has to be higher than inflation rate. So, that is what we expect”.
The United States Trade Representative (USTR) has criticised Nigeria’s import ban on 25 categories of goods, claiming that the restrictions limit market access for American exporters.
This is the effect of President Donald Trump’s tariffs introduction on goods entering the United States, with Nigeria facing a 14 per cent duty.
The USTR highlighted the impact of Nigeria’s import ban on various sectors, particularly agriculture, pharmaceuticals, beverages, and consumer goods.
The restrictions affect items such as beef, pork, poultry, fruit juices, medicaments, and alcoholic beverages, which the United States sees as significant barriers to trade.
The agency argues that these limitations reduce export opportunities for United States businesses and lead to lost revenue.
“Nigeria’s import ban on 25 different product categories impacts United States exporters, particularly in agriculture, pharmaceuticals, beverages, and consumer goods.
“Restrictions on items like beef, pork, poultry, fruit juices, medicaments, and spirits limit United States market access and reduce export opportunities.
“These policies create significant trade barriers that lead to lost revenue for United States businesses looking to expand in the Nigerian market”, the agency said .
In 2016, Nigeria implemented the ban on these 25 items as part of efforts to control imports and stimulate local production.
Some of the banned items include poultry, pork, refined vegetable oil, sugar, cocoa products, spaghetti, beer, and certain medicines.
On March 26, 2025, the Federal Government also announced plans to halt solar panel imports to encourage local manufacturing as part of its push for clean energy.
A leading agribusiness strategist and digital agriculture expert, Ayo Oluwa Okediji, has sought cooperative-driven investments in sustaining growth of poultry industry in Nigeria.
He said the poultry industry was at a defining moment and requires urgent structural reforms to secure its future and ensure long-term sustainability.
Speaking on the theme, “Strengthening Poultry Farming Through Cooperative Synergy and Strategic Investments”, at the recently concluded Oyo Mega Poultry Workshop 2025 in Ibadan, Okediji called on poultry farmers, cooperative leaders, financial institutions and policy makers to rethink the existing structure of the poultry sector.
He stressed the need to transition from fragmented, individually-driven operations to well-structured, cooperative-led enterprises capable of attracting sustainable financing and securing long-term viability.
He said, “Our poultry sector cannot thrive on individual effort alone. We need to organise ourselves into cooperative clusters, build strong governance systems and position ourselves to attract the level of investment needed to sustain this industry beyond this generation.”
Drawing on lessons from successful global cooperative models such as Rabobank in the Netherlands and Landus Cooperative in the United States, Okediji introduced the FarmClusters Poultry Model, a locally adapted solution developed by Agribusiness Dynamics Technology Limited (AgDyna), a subsidiary of AgroInfoTech Africa.
According to him, the model is currently being piloted in Oyo State in partnership with PANOY Agribusiness Limited and local poultry cooperatives.
The Rivers State Representative of the Nigeria Chambers of Commerce, Mines, Industries and Agriculture (NACCIMA), Mr. Erasmus Chukwundah, has urged palm oil farmers to consider hybrid seedlings for planting, if they must break even in palm oil business.
Chukwundah said this recently at the Free Oil Palm Business Climate Smart Best Management Practice/Assistance Training organized by Partnership Initiative In Niger Delta (PIND) for Palm Oil Farmers in Elele, Ikwerre Local Government Area.
The Rivers representative said until palm oil farmers begin to consider such hybrid oil palm seedlings, they may not meet up with the daily increasing demand of palm oil in the market.
According to him, the seedlings produce up to 30 bunches at once that ripen same time.
He said PIND decided to partner with Oil Palm Growers Association of Nigeria (OPGAN) to ensure that the message was received by the targeted audience.
According to him, palm oil remained a popular choice of industry operators as it could be converted to many other products such as vegetable cooking oil.
He also noted that products such as motor tyers, marine ropes and others are now gotten from the palm tree.
Chukwundah, who is the immediate past Director-General of Port Harcourt Chamber of Commerce, Mines, Industries, and Agriculture (PHCCIMA), further warned against use of unrecommended fertilisers in growing oil palms.
He noted that such practices could limit its export value or chances as the foreign marketers have a way of detecting such .
He reiterated the need for organic fertilizers, including poultry droppings, to enable them have a natural palm oil.
“People must reduce physical contact with palm oil production. That is why we are campaigning for hydrolic oil mills. The foreign markets are no longer interested in crude method of palm oil production”, he said.
Meanwhile, one of the farmers, Sonny Didia, who appreciated Chukwundah’s commitment towards the concern of farmers, appealed for an urgent need for loan opportunity with low interest rate in order to enable them beat the target.
King Onunwor