Digital lenders in Nigeria may begin cautiously lowering borrowing costs after the Central Bank of Nigeria (CBN) cut the Monetary Policy Rate (MPR) to 26.5% from 27% on Tuesday, signalling a potential easing of the country’s prolonged high-interest-rate environment. The rate cut, the first since September 2025, follows signs of moderating inflation. According to Yemi Cardoso, CBN governor, this decision followed the sustained drop in inflation, which has fallen for 11 consecutive months. Headline inflation stood at 15.10% in January. The MPR is the benchmark interest rate set by the CBN to control inflation, manage money supply, and influence borrowing costs in the economy. A lower benchmark rate could ease funding costs for digital lenders that rely heavily on borrowed capital rather t...