2027: Peter Obi Promises Lower Interest Rates if Elected President

By Adedapo Adesanya

The presidential candidate of the Nigeria Democratic Congress (NDC), Mr Peter Obi, has pledged to reduce interest rates if elected.

Mr Obi made the remarks during an appearance on Sunday Politics on Channels Television late on Sunday, where he outlined plans to revive the economy through cheaper credit for businesses and increased investment in agriculture and manufacturing.

He said Nigeria’s current borrowing costs are crippling small businesses, and this could be tied to the current interest rate level.

Last week, the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) retained the Monetary Policy Rate (MPR), the country’s benchmark interest rate, at 26.5 per cent.

Mr Obi argued that government should focus on creating an enabling environment for entrepreneurs rather than directly engaging in production, stressing that small businesses remain the largest employers of labour in successful economies.

Drawing comparisons with countries such as Indonesia, he said governments that prioritise small businesses provide affordable financing, training and other forms of support that enable enterprises to thrive.

“The government supports them with training and loans at less than 10 per cent, actually about 5 per cent. How can you do small business in Nigeria with no support, no training, and interest rates at 35 per cent? It is impossible.”

According to Mr Obi, supporting manufacturers and visiting factories to understand their challenges is central to building a productive economy rather than one driven by consumption.

“I know the biggest problem for manufacturers today in Nigeria is interest rate,” he said.

The show’s host, Mr Seun Okinbaloye, then asked whether he would reduce interest rates if elected president.

“Of course, yes,” he answered, adding that his background in building businesses and in the corporate world qualifies him to know exactly what to do to drive the interest rate down.

Although the Nigerian president does not directly determine the MPR, presidential economic policies and appointments to the CBN leadership can influence the broader environment in which those decisions are made.

Following the conclusion of the 306th Monetary Policy Committee meeting held in Abuja on July 20 and 21, 2026, the Governor of the CBN, Mr Yemi Cardoso, who heads the MPC, said the decision to hold rates steady is intended to sustain the moderation in inflation, preserve stability in the foreign exchange market and consolidate recent macroeconomic gains.

Headline inflation eased marginally to 15.91 per cent in June 2026, from 15.93 per cent in May, although food inflation accelerated on a monthly basis to 3.75 per cent from 2.98 per cent.