Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has indicated that the Nigerian government could consider cutting interest rates if inflation continues to moderate.
Speaking in an interview with Bloomberg on the sidelines of
the Abu Dhabi Sustainability Week, Edun praised the Central Bank of Nigeria,
CBN, for what he described as “excellent” progress in taming inflation, which
fell to 14.45 percent in November 2025.
He credited the recent improvement in Nigeria’s
macroeconomic outlook to the aggressive monetary tightening measures
implemented over the past two years.
Edun’s remarks come amid mounting pressure on the federal
budget from rising debt-servicing obligations, unstable oil revenues and a
widening fiscal deficit, making any reduction in borrowing costs significant
for public finances.
An interest rate cut, he noted, could help lower
debt-servicing costs and ease the strain on government finances.
Recall that CBN cut its benchmark interest rate for the
first time in three years in September 2025, reducing it by 50 basis points to
27 percent.
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