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From Access to Sterling: See banks’ new lending rates after CBN hike

Nigeria says FX inflows in Q1 represents 136% of 2023 level

The Nigerian financial services sector, including commercial and merchant banks, have adjusted their lending rates in response to the rising Monetary Policy Rate (MPR) set by the Central Bank.

A total of 25 out of 31 lending financial institutions offer maximum borrowing interest rates above the MPR to various sectors of the economy. Six lenders, meanwhile, give loans to some sectors at a rate below the benchmark interest rate, according to data from the CBN.

The Central Bank of Nigeria (CBN) has since its first Monetary Policy Committee (MPC) meeting in February 2024, raised the MPR by 750 basis points to 26.25 percent in May 2024 from 18.75 percent in July 2023.

According to data published by the Central Bank of Nigeria (CBN) as of May 17, 2024, the lending rates for various deposit money banks (DMBs) are as follows:

Access Bank offers a maximum lending rate of 28.50 percent for customers in agriculture, forestry, and manufacturing, with a borrowing rate of 22 percent for prime customers.

Citi Bank provides a maximum interest rate of 28 percent for customers in the mentioned sectors and a 21.50 percent rate for prime customers.

Coronation Merchant Bank offers customers loans at a 30 percent rate for both prime and maximum. The bank offers a 9 percent interest rate to prime customers in mining, quarrying, and manufacturing.

Ecobank sets its maximum lending rate at 30 percent, with a 26.75 percent prime lending rate.

FBN Quest Merchant Bank offers a 9 percent rate to prime customers in agriculture and forestry, 7 percent to prime customers in the manufacturing sector, and a maximum lending rate of 30 percent in the same sector.

FCMB, with an interest rate of 1.15 percent on savings deposits, prices its loans at a maximum of 40 percent and a prime lending rate of 22.50 percent.

Fidelity Bank provides loans at an interest rate of 27 percent for its prime customers, with a maximum rate of 30 percent.

First Bank of Nigeria offers a lending rate of 25 percent to its prime customers, with a maximum rate of 32 percent. However, prime customers in the manufacturing sector can access loans at 15 percent.

FSDH Merchant Bank allows prime customers to access loans at 18 percent, while offering a maximum lending rate of 43 percent. Prime customers in the manufacturing sector can secure loans at 9 percent. Globus Bank Limited offers lending rates ranging from 9 percent to 29 percent for prime and maximum rates.

Guaranty Trust Bank provides a maximum lending rate of 24 percent for the agriculture and manufacturing sectors, with a prime rate of 10 percent for manufacturing and 22 percent for agriculture. Customers in the mining and quarrying sectors enjoy an interest rate of 9 percent, which is below the regulatory benchmark rate.

Keystone Bank offers lending rates of 31 percent for prime customers and 36 percent as the maximum rate across all sectors of the economy. Customers in manufacturing, real estate, and public finance, among others, can access loans at prime and maximum rates of 12 percent and 20 percent, respectively.

Optimus Bank provides prime and maximum lending rates of 23.75 percent and 35 percent to customers from various sectors.

Polaris Bank offers a 9 percent rate to its prime customers in some sectors of the economy, with maximum rates of 35 percent and 32 percent for those in the agriculture and manufacturing sectors, respectively.

Premium Trust offers maximum lending rates between 32 percent and 33 percent for certain sectors and a prime rate of 28 percent.

At Providus Bank, customers from any sector of the economy can obtain loans at a maximum rate of 30 percent and a prime lending rate of 25 percent.

Rand Merchant Bank provides a maximum lending rate of 32.5 percent and prime lending rates ranging from 22 percent to 24.75 percent.

Signature Bank offers lending rates of 32 percent for prime and 35 percent for maximum lending rate. The highest lending rate obtainable in Stanbic IBTC Bank is 50 percent maximum and prime lending rate of between 8 percent and 27 percent.

At Standard Chartered Bank, prime and maximum rates are set at 19 percent and 26 percent, respectively, across all sectors of the economy. Sterling Bank offers lending rates of 29 percent for prime customers and 37 percent for maximum customers in any sector.

SunTrust Bank offers prime lending rates ranging from 7 percent to 18 percent, and maximum rates ranging from 20 percent to 29 percent. TitanTrust Bank provides prime lending rates between 25 percent and 28.50 percent, and maximum loan rates between 25 percent and 36 percent.

United Bank for Africa (UBA) offers borrowing rates of 28.50 percent for prime customers and a maximum rate of 32 percent for any sector of the economy. For Union Bank, prime and maximum lending rates are set at 19.65 percent and 35 percent, respectively.

Unity Bank offers lending rates ranging from 9 percent to 30 percent, with a maximum rate of 38 percent. Wema Bank’s rates are set at 32.50 percent for prime lending and 34.50 percent for maximum borrowing rates.

Zenith Bank offers prime lending rates of 25.28 percent and maximum rates of 30 percent for borrowers from any sector of the economy.