Cut interest rates as fast as you raise them, IMF charges banks

The International Monetary Fund (IMF) has expressed concern regarding the disparity in the speed at which Nigerian banks adjust their lending rates in response to changes in monetary policy. According to the IMF's June 2026 country report, titled "Nigeria: Selected Issues," banks tend to raise interest rates swiftly when the Central Bank of Nigeria (CBN) tightens monetary policy, yet they are significantly slower to reduce rates when the policy is eased. This behavior raises questions about the responsiveness of the banking sector to monetary policy changes and its implications for economic growth. The IMF has urged banks to align their rate adjustments more closely with the pace of monetary policy shifts.

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