Village people wear suits, and ties too
Nigerian business owners are tired of CBN’s bullshit
Good morning, Big Brains. I come bearing gifts as promised. We created a report on the impact of misinformation, AI, and digital threats on Nigerian youths. You can download it for free. Here’s one of the craziest facts you’ll find in the report – misinformation is the reason over 60% of Nigerian youths are no longer interested in anything related to politics.
- Margaret
Word count: ~ 1, 000
Reading time ~ 5 mins
Let’s get into today’s edition:
CBN’s interest rates are holding business owners by the neck
Landlords and agents are getting humbled in Enugu
The Big Deal
CBN’s interest rates are holding business owners by the neck
When Nigerian businesses count the weapons fashioned against them, they count the Central Bank of Nigeria (CBN) twice.
Last week, CBN’s Monetary Policy Committee (MPC) had its 299th meeting, and business owners were hoping the Monetary Policy Rate (MPR) that determines loan interest rates would drop. But instead of dropping the MPR, the committee decided to maintain the previous rate of 27.5%.
The CBN believes things are improving, but there’s no need to lower the MPR yet. The committee also pointed out that core inflation is still a problem (even though they claim it dropped by 10% last week), and food prices are keeping inflation high. Their fear is that lowering interest rates now could undo all the “progress” made in stabilizing the economy.
Why is this a big deal?
Nigerian business owners were not exactly holding their breath for the CBN to suddenly develop a soft spot for their struggles, but they were at least hoping for a slight reduction in interest rates. With the MPR still at 27.5%, loans will remain painfully expensive, making it harder for businesses, especially small and medium enterprises (SMEs), to get loans for operation purposes.
Businesses that secured loans two to three years ago when interest rates were around 20% are now drowning in the increased cost of repayments. In 2024, 43.7% of Nigerian businesses had to let go of employees because of operational costs and loan interest rates.
When businesses struggle, they cut costs. That means hiring freezes, layoffs, or price hikes to pay off expensive loans. This is another inconvenience in a country where inflation is already making competitive salaries look like rookie numbers. Small businesses are the backbone of the economy, and when they suffer, we all feel the heat. Over 50% of Nigerian businesses have already stated that they are experiencing lower sales because Nigerians cannot afford to prioritize them regularly anymore. If the MPR stays the same, it could get worse.
The CBN’s decision to hold rates might make sense on paper, but on the streets, where businesses are barely surviving, it feels like a policy made in hell.
Landlords and agents are getting humbled in Enugu
It might be too soon to say this, but good things seem to be coming to the people of Enugu and their households…literally.
If you’ve ever tried to rent a house in Nigeria, you know the struggle. By the time you’re done paying agency fees, legal fees, and whatever else the landlord cooks up, your rent might start looking like a threat to your account balance. But it seems like the Enugu State Government is finally stepping in to do something about it.
A new bill, introduced by Okey Mbah of the Nkanu East constituency, has just passed its first reading in the State House of Assembly, and if it becomes law, landlords, agents, and lawyers will no longer be able to milk tenants dry. With this new bill, agency and legal fees would no longer cost more than 10% of the rent. You can choose to negotiate below this limit but never above it.
The bill also states that tenants shouldn’t have to pay any random, undefined “premium” fee to secure an apartment—just the legal fee, which must strictly cover the cost of preparing the rental agreement. And if anyone tries to overcharge, they’ll be charged ₦500,000 or sentenced to six-month in prison, or worst case scenario, both.
But this bill wants to fix more than just money problems. It’s also coming for landlords who evict tenants without following due process. It will establish clear legal timelines for eviction notices, so landlords in Enugu will no longer be able to move mad.
And for people who want to become property agents or managers in Enugu, they’ll now need proper certification. No more random middlemen swindling tenants in the name of “agency fees.” And that infamous “caution fee” that landlords usually ask for? If this bill becomes law, it’s gone for good.
The Speaker of the Enugu State House of Assembly, Uche Ugwu, applauded Mbah for proposing the bill and called it timely. He also encouraged other lawmakers to give it a thorough look before the second reading.
This is a big “God when” moment for states like Lagos and Abuja, where rents are unnecessarily high because of hidden charges. Shout out to Mbah for standing on good business. Maybe his colleagues in the Senate will pick up one or two lessons on creating policies that actually improve people’s lives from him.
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“If you could help Nigeria pick a president, who would it be and why?” ”
Jesuferanmi’s response - “ Asherkine. We all know why”
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