The Central Bank of Nigeria (CBN) has released new data showing that the average maximum lending rate charged by commercial and merchant banks declined to 33.16% in June 2026, a drop from 34.78% recorded in May 2026. This marks the second notable decrease in 2026 after months of elevated borrowing costs.
Rate Trends in 2026
The maximum lending rate began 2026 at 32.68% in January, then climbed sharply to 35.17% in February. It stayed near that level through April before easing in subsequent months. The June figure reflects continued pressure on banks to adjust rates amidst economic conditions.
Despite the recent drop, borrowers are still paying significantly more than a year ago. In June 2025, the average maximum lending rate was 29.51%, meaning the current rate is about 3.65 percentage points higher year-on-year.
CBN Holds Monetary Policy Rate Steady
The Monetary Policy Committee (MPC) left the benchmark Monetary Policy Rate (MPR) unchanged at 26.5% during its latest meeting, maintaining the rate set after a 50-basis-point cut in February. CBN Governor Olayemi Cardoso explained that the decision aims to preserve macroeconomic stability while allowing previous policy measures to take full effect.
The maximum lending rate represents the ceiling interest rate banks apply to higher-risk borrowers. In contrast, prime lending rates, offered to customers with strong credit profiles, vary widely across banks.
Bank-by-Bank Lending Rates
The CBN data provides a snapshot of both prime and maximum lending rates for various banks. Prime rates range from as low as 1% at Stanbic IBTC to over 41% at Tatum Bank. Maximum rates also vary, with Stanbic IBTC at 60.00% and Ecobank at 48.00%. Here is a selection:
- Access Bank: Prime 25.50%, Max 32.00%
- Ecobank: Prime 26.75%, Max 48.00%
- First Bank of Nigeria: Prime 26.00%, Max 38.00%
- Guaranty Trust Bank: Prime 21.00%, Max 32.00%
- Stanbic IBTC: Prime 1.00%, Max 60.00%
- United Bank for Africa: Prime 28.50%, Max 32.00%
- Zenith Bank: Prime 23.62%, Max 32.00%
Impact on Manufacturers and Credit
The high cost of credit continues to pressure manufacturers. Bank lending to the sector fell sharply between 2024 and 2025, according to earlier reports. While total bank lending has recorded modest growth, credit to agriculture and services sectors rose, offering some positive signs.
Government Digital Devices Financing Programme
In a separate development, the federal government has opened applications for the Credit for Laptops, Internet, Connectivity, and Knowledge Digital Devices (C.L.I.C.K.D.) Programme. Through the Nigerian Consumer Credit Corporation (CREDICORP), eligible Nigerians can apply for affordable financing to purchase laptops, smartphones, tablets, and other digital devices. This initiative aims to improve digital access via consumer credit.
