Nigeria's rising debt and the Central Bank's 27% Monetary Policy Rate (MPR) are squeezing small businesses and slowing growth. Despite a slight rate adjustment, credit remains painfully expensive for entrepreneurs struggling with inflation and weak …  | By Busola Bamidele on September 27, 2025 | Nigeria's rising debt and the Central Bank's 27% Monetary Policy Rate (MPR) are squeezing small businesses and slowing growth. Despite a slight rate adjustment, credit remains painfully expensive for entrepreneurs struggling with inflation and weak consumer demand. Public debt climbed to N149.39 trillion in Q1 2025, up from N87.38 trillion when President Bola Tinubu took office in June 2023. In less than two years, the government has borrowed nearly N56.6 trillion, with debt servicing now gulping over 90% of revenue. Read also: Analysts warn that heavy domestic borrowing crowds out private credit, pushing lending rates beyond the reach of SMEs—the backbone of Nigeria's economy. Many operators are shelving expansion plans, cutting jobs, or shutting down altogether. Experts say urgent fiscal discipline and targeted support for small businesses are key to breaking the cycle, or Nigeria risks deeper stagnation that punishes entrepreneurs and households alike. | | | |
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