Zenith, Access, UBA, Other Banks Release New Lending Rates As CBN Lowers Interest Rate
- The latest lending rates of commercial and merchant banks operating in the country have been released
- The figures showed the prime and maximum lending rates charged depending on customers’ creditworthiness
- The apex bank said publishing the rates will create a comparison and allow borrowers to compare borrowing costs
Legit.ng journalist Dave Ibemere has experience in business journalism, with in-depth knowledge of the Nigerian economy, the stock market, and broader market trends.
The Central Bank of Nigeria (CBN) has released the latest lending rates following its decision to cut the interest rate by 50 basis points to 26.50% from 27%.
The apex bank announced the new MPR rates during its 304th Monetary Policy Committee (MPC) meeting held in Abuja recently.
Source: Getty Images
The CBN governor, Olayemi Cardoso, said all members of the MPC unanimously agreed upon the decision.
He said.
“The committee decided to reduce the monetary policy rate by 50 basis points to 26.50 percent."
Banks adjust lending rates
Commercial banks' latest lending rates for customers and businesses to reflect the new MPR have been released by the CBN
The rates highlight the prime and maximum lending rates applicable to customers across Deposit Money Banks (DMBs) and merchant banks.
Based on new data published on February 27, the average loan rate for banks has dropped to 24% for the prime lending rate and 32% for the maximum lending rate.
Prime lending rates are usually offered to customers with strong credit profiles and low risk, while the maximum lending rates apply to customers with lower credit ratings or higher risk.
The CBN noted that the decision to release the rates forms part of its transparency and disclosure policy designed to guide business and borrowing decisions in the economy.
Among the banks, Zenith Bank published a prime lending rate of 24.00% and a maximum rate of 32.00%, while United Bank for Africa set its prime rate at 28.50% and maximum lending rate at 32.00%.
Guaranty Trust Bank disclosed a prime lending rate of 3.00% and a maximum rate of 35.00%, while Access Bank maintained a prime rate of 25.50% and a maximum lending rate of 32.00%.
Other banks, such as Polaris Bank, Sterling Bank, Wema Bank, Keystone Bank, and Union Bank, also released their updated lending rates.
Source: Getty Images
Here is a full breakdown
Bank | Prime (%) | Max (%) |
Access Bank | 25.50 | 32.00 |
Alpha Morgan Bank | 28.00 | 32.00 |
Citi Bank | 19.50 | 23.00 |
Coronation Merchant Bank | 25.00 | 33.00 |
Ecobank | 26.75 | 48.00 |
FBN Quest Merchant Bank | 5.00 | 33.50 |
FCMB | 31.00 | 46.10 |
Fidelity Bank | 30.00 | 36.00 |
First Bank of Nigeria | 26.00 | 38.00 |
FSDH Merchant Bank | 28.00 | 33.00 |
Globus Bank Ltd | 31.00 | 33.00 |
Greenwich Merchant Bank | 27.00 | 30.00 |
Guaranty Trust Bank | 3.00 | 35.00 |
Keystone Bank Ltd | 30.50 | 36.00 |
Nova Bank | 30.00 | 24.69 |
Optimus Bank | 28.50 | 35.00 |
Parallex Bank | 30.00 | 32.50 |
Polaris Bank | 29.00 | 39.90 |
Premium Trust Bank | 28.00 | 36.00 |
Providus Bank | 27.00 | 35.00 |
Rand Merchant Bank Nig. Ltd | 22.50 | 23.00 |
Stanbic IBTC | 1.00 | 60.00 |
Standard Chartered Bank | 27.00 | 29.00 |
Sterling Bank | 27.50 | 35.00 |
SunTrust Bank | 22.00 | 37.00 |
Tatum Bank | 33.05 | 38.05 |
United Bank for Africa | 28.50 | 32.00 |
Union Bank | 16.00 | 37.00 |
Unity Bank | 30.00 | 38.00 |
Wema Bank | 32.50 | 34.50 |
Zenith Bank | 25.00 | 32.00 |
Banks loan to customers
Earlier, Legit.ng reported that the total loans to customers from 10 commercial banks in Nigeria rose to N66.49 trillion in the first nine months of 2024.
A further analysis showed that the banks had an average Loan-to-Deposit Ratio (LDR) of 46.72%. This means that for every N100 deposited, they lent N46.
LDR is a ratio that measures liquidity by comparing a bank’s total loan credit facilities to its deposits. It is an important indicator of a bank’s lending activity.
Proofreading by James Ojo, copy editor at Legit.ng.
Source: Legit.ng
