Lagos, Nigeria — August 13, 2025 | Nigerian corporates are tightening their belts as soaring interest rates make borrowing more expensive and expansion dreams harder to fund. With the Central Bank of Nigeria holding a firm grip on monetary policy to tame inflation and defend the naira, lending rates have climbed to unprecedented levels, forcing businesses to borrow less while paying more.
Market data reveals a steep slowdown in corporate bond issuance and bank lending to large firms this year, even as the cost of capital shoots up. Some top-tier companies are shelving ambitious projects, while others are opting for short-term refinancing to limit exposure to the punishing rates.
Analysts warn the squeeze is hitting manufacturing, real estate, and fast-moving consumer goods particularly hard, as firms redirect a growing share of revenue toward debt servicing rather than growth. In response, many are pivoting toward equity financing, strategic partnerships, and offshore loans to find relief from the domestic rate crunch.
While the government insists high rates are necessary to curb inflation and stabilise the currency, business leaders caution that prolonged pressure on credit could choke investment, slow job creation, and dampen Nigeria’s economic rebound.