- The Central Bank of Nigeria publishes the maximum lending rates for various banks
- The publication on the CBN website is part of the apex bank's commitment to transparency and full disclosure
- Breakdown shows FCMB has one of the most expensive maximum lending rate while GTB has the cheapest
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The Central Bank of Nigeria has revealed the latest maximum and prime lending rates for various banks in a new report published on its website.
The maximum lending rate refers to the average of the highest lending rates charged by deposit money banks in Nigeria.
While prime lending rate refers to the average prevailing lending rate charged by most deposit money banks in Nigeria to some of its more favoured customers.
Checks show that Tier-2 banks operating in Nigeria maintained high lending rates to customers in 2022.
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The latest CBN data on banks’ deposit and lending interest rates showed that the maximum lending rate hit 29.13% average in December 2022, while the average prime lending rate rose to 13.85% in December 2022
Breakdown of banks' lending rate
First City Monument Bank (FCMB)’s general business maximum lending rate stayed at 42% between January and November 2022, the highest in the banking sector and its prime lending rate at 19.50%.
FCMB was closely followed by Stanbic IBTC with 36% general maximum lending rate as of November 18, 2022 from 39% in December 31, 2021.
In addition, Keystone bank limited closed on November 18, 2022 with a general maximum lending rate of about 36per cent as against 41% in December 31, 2021.
Zenith bank closed November 18, 2022 with general business maximum lending rate of about 30% and it was at the same rate in 2021.
CBN Increases Interest Rate to 17.5%, Insists No Extension of Deadline for Deposit of Old Naira Notes
Similarly, the average prime lending rate increased by 2.17 percentage points in December 2022 to 13.85%, up from 11.68% in December 2021.
Heritage Bank has one of the highest prime lending rates in the banking market as of November 18, 2022, followed by Unity Bank Plc.
Heritage Bank had a 27% general business prime lending rate during the time, while Unity Bank came in second with a 26% general prime lending rate.
Wema Bank Plc and Providus Bank both have general business prime lending rates of 25% as of November 18, 2022, respectively, however Stanbic IBTC Bank has the lowest rate in the banking market at 7%.
Guaranty Trust Bank (GTBank) in the period under review has 10 percent general business prime lending rate one of the cheapest.
Loans to get expensive
In its continuous effort to fight inflation CBN on Tuesday, 24 January announced that it will be increasing the interest rate by 17.5 percent.
This will mean banks will adjust their lending rates upwards in the coming months.
Nigerian government asks Google, Apple to delete loan sharks
Meanwhile in another report Legit.ng revealed that the Nigerian government, via the Federal Competition and Consumer Protection Commission (FCCPC), has asked Google and Apple to delete about four loan apps from their stores.
The FCCPC said the loan apps engaged in unethical practices against its laid down procedures.
The affected apps include Maxi Credit, Here4U, Chacha, and SoftPay.