Why CBN rate cuts don’t mean more SME lending

This is Follow the Money, our weekly series that unpacks the earnings, business, and scaling strategies of African fintechs, financial institutions, companies, and governments. A new edition drops every Monday.

For a small business in Nigeria, securing a bank loan has long felt like trying to step through a moving doorway.

Commercial banks mobilise deposits, and the Central Bank of Nigeria (CBN) urges them to extend credit, yet formal lending to small businesses remains low.

According to World Bank data…