The Central Bank of Nigeria (CBN) has released its lending rate data for September, showing that Nigerian banks charged borrowers rates ranging from single digits to as high as 60%, depending on perceived credit risk. The figures, which cover both prime lending rates for lower-risk customers and maximum lending rates for higher-risk borrowers, come after the Monetary Policy Committee's decision to cut the benchmark interest rate to 23%.
Highest and Lowest Rates Among Nigerian Banks
Stanbic IBTC posted the highest maximum lending rate in the September data at 60.00%, even though its prime rate was comparatively modest at 16.00%. Ecobank also recorded a high maximum rate of 48.00%, with its prime rate at 26.75%.
Tatum Bank led on the prime lending rate side, charging 37.07%, with a maximum rate of 42.07%. Nova Bank followed with a prime rate of 33.78% and a maximum of 39.00%, while Wema Bank reported 32.50% and 34.50%, respectively. FCMB recorded a prime rate of 31.00% and a maximum of 46.10%. Keystone Bank posted 30.50% and 36.00%, while Fidelity Bank reported 30.00% and 36.00%, respectively.
At the lower end, Guaranty Trust Bank listed a prime rate of just 3.00%, although its maximum rate reached 35.00%. Quest Merchant Bank reported both a prime and maximum rate of 5.00%, while Citi Bank had one of the lowest maximum rates at 20.00%, alongside a prime rate of 19.00%.
Rates for Major Banks
Among the larger banks, Zenith Bank's prime rate stood at 23.71%, with a maximum of 32.00%, while First Bank of Nigeria reported 26.00% and 38.00%, respectively. United Bank for Africa recorded 28.50% and 32.00%, while Access Bank posted 25.50% and 32.00%.
Other notable figures include Alpha Morgan Bank at 23.00% prime and 32.00% maximum, Coronation Merchant Bank at 12.00% and 28.00%, and FSDH Merchant Bank at 23.00% and 33.00%. Globus Bank Ltd reported 28.50% prime and 33.00% maximum, while Greenwich Merchant Bank posted 27.90% and 32.50%. Optimus Bank recorded 28.50% and 35.00%, Parallex Bank 30.00% and 32.50%, Polaris Bank 29.00% and 39.90%, and Premium Trust Bank 28.00% and 42.00%.
What the Rate Cut Means for Borrowers
The September disclosures come after the CBN's Monetary Policy Committee cut the benchmark Monetary Policy Rate by 350 basis points, bringing it down to 23% from 26.5%. CBN Governor Olayemi Cardoso announced the decision at the end of the committee's 307th meeting in Abuja, citing easing inflation and improved foreign exchange conditions as key factors behind the move.
The published data gives borrowers a clearer picture of loan costs across Nigerian banks, with the full list showing significant variation: Access Bank (25.50% prime, 32.00% maximum), Citi Bank (19.00%, 20.00%), Ecobank (26.75%, 48.00%), Guaranty Trust Bank (3.00%, 35.00%), Stanbic IBTC (16.00%, 60.00%), Standard Chartered Bank (27.00%, 29.00%), Sterling Bank (26.00%, 33.50%), SunTrust Bank (22.00%, 37.00%), Union Bank (16.95%, 38.00%), and Zenith Bank (23.71%, 32.00%).
Earlier, Legit.ng reported that the CBN has released an exposure draft proposing the establishment of a 30-member Mediation and Dispute Resolution Panel (MDRP) aimed at strengthening consumer protection and boosting confidence in Nigeria's financial system. According to a circular signed by the acting director of the Development Finance Advisory Department, Paul Oluikpe, the initiative is part of broader efforts to enhance the financial ecosystem, ensure compliance with existing legislation, and improve the efficiency of financial intermediation. The panel is intended to serve as the first point of recourse for dispute resolution under the Act.
