SMEs squeezed as banks revise interest on loans

Small and medium enterprises (SMEs) in Nigeria that took loans from deposit money banks (DMBs) before the bumper hike in the key interest rate last year are getting more than they bargained for as interest payments have surged.

The Monetary Policy Committee of the Central Bank of Nigeria increased the monetary policy rate (MPR), also known as the benchmark interest rate, four times last year from 11.5 percent in May to 16.5 percent in November in a bid to curb inflation.

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