Peter Obi vows to cut interest rates if elected, slams CBN's 26.5% rate
Peter Obi, presidential candidate of the Nigeria Democratic Congress (NDC), said on Politics Today (Channels TV, July 26, hosted by Seun Okinbaloye) that he would reduce interest rates if elected, calling Nigeria's current borrowing costs crippling for small businesses. He criticized the Central Bank of Nigeria's decision to keep the Monetary Policy Rate at 26.5% after the July 20-21, 2026 MPC meeting, noting headline inflation at 15.91% in June 2026 and food inflation rising to 3.75% monthly. Obi argued that governments should support entrepreneurs with training and loans under 10%, citing Indonesia's model, and stressed that small businesses are the largest employers in successful economies. He also highlighted agriculture's potential, noting Nigeria produces less than 10 million tonnes of paddy rice yearly compared to Bangladesh's 50-60 million tonnes and the Netherlands earning over €120 billion from agriculture on just 33,000 km², and urged developing arable land in Niger, Sambisa, Taraba, and Mambilla Plateau to boost food security, jobs, and reduce insecurity. Obi, former Anambra State governor (2006-2014) and 2023 Labour Party contender, announced former Kano Governor Senator Rabiu Musa Kwankwaso as his 2027 running mate, setting up a three-way race with President Bola Tinubu (APC) and former VP Atiku Abubakar (ADC).
Why does this matter? High interest rates raise the cost of loans for small businesses and farmers, limiting expansion and job creation. Obi's pledge signals a potential shift toward cheaper credit and greater agricultural investment, which could lower production costs, boost local output, and ease inflationary pressures if implemented. His focus on agriculture and SME support offers a clear policy contrast to the current administration's monetary tightening stance.
What should you know or do? If you run a small business or farm, consider how lower interest rates could affect your loan repayments and expansion plans. For investors, note the emphasis on agriculture as a growth sector. Voters should weigh Obi's proposed economic approach against the incumbent's policies ahead of the 2027 election.