Nigerian Bank Stocks Rally as Interest Rate Cut Boosts Profit Outlook – September 25, 2025
Story: written by Uzuh Rita September 25,2025
Banking stocks on the Nigerian Exchange (NGX) staged a strong rebound on Thursday, September 25, 2025, after the recent interest rate cut by the Central Bank of Nigeria (CBN) lifted investor sentiment and improved profit expectations across the financial sector.
Market analysts noted that the policy shift, which reduces the cost of borrowing, is expected to stimulate credit growth and increase transaction volumes—factors likely to enhance banks’ earnings potential in the coming quarters.
Shares of tier-one banks led the rally, with investors anticipating stronger net interest margins and improved lending capacity. The rebound also reflects renewed confidence in the stability of Nigeria’s financial system, following months of market uncertainty.
Economic experts believe the CBN’s decision to ease monetary policy could translate into broader market gains, as banking remains a key driver of the Nigerian economy. However, they cautioned that inflationary pressures and foreign exchange volatility may still pose risks to long-term profitability.
Overall, the surge in bank stocks signals a positive response from investors, underscoring the sector’s resilience and its pivotal role in driving economic recovery.
