Nigerian Bank Reduces Interest Rate on Customers' Savings After CBN’s Latest Decision
- Ecobank Nigeria announced a downward review of interest rates on its Naira Savings Products following a CBN decision
- The bank reduced rates across four savings accounts, with the All Savings Account dropping from 7.95% to 6.90% per annum
- The revised rates took effect on September 24, 2026, with withdrawal limits applying for customers to earn the stated rates
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Legit.ng journalist Dave Ibemere has experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
Ecobank Nigeria Limited has cut interest rates on its naira savings products, citing the Central Bank of Nigeria's recent adjustment of the Monetary Policy Rate (MPR) as the reason for the change.
The bank informed customers through an official notice that four products were affected: the All Savings Account, Save-As-You-Spend, MyFirst Account, and Target Savings Account.
Source: UGC
All revised rates became effective on September 24, 2026.
Ecobank's new savings rates
The All Savings Account saw its rate drop from 7.95% to 6.90% per annum. The Save-As-You-Spend, MyFirst Account and Target Savings Account all fell from 8.95% to 7.90% per annum.
Customers must observe withdrawal limits to qualify for the stated rates. Those holding an All Savings Account, Save-As-You-Spend or MyFirst Account can make no more than four withdrawals per month. Target Savings Account holders are limited to one withdrawal per quarter.
In its notice to customers, Ecobank wrote:
"Dear Valued Customer, we wish to inform you of a downward review of the interest rates on our Naira Savings Products, following the recent adjustment in the Monetary Policy Rate (MPR) by the Central Bank of Nigeria (CBN)."
The bank added:
"We remain committed to providing you with competitive returns and excellent banking services."
CBN's monetary policy rate decision
The rate cuts follow a decision by the CBN's Monetary Policy Committee (MPC), which reset the MPR at 23% during its meeting on September 21 and 22, 2026.
In Monetary Policy Communiqué No. 164, the CBN said the MPC also recalibrated the Standing Facilities Corridor to +50/-300 basis points around the MPR.
The Cash Reserve Requirement (CRR) for Deposit Money Banks remained at 45%, Merchant Banks at 16% and non-TSA public sector deposits at 75%, Punch reports.
The CBN described the move as an operational realignment rather than a shift in policy direction, saying it was:
"Aimed at strengthening monetary policy transmission and reinforcing the primacy of the monetary policy rate."
Source: Getty Images
The apex bank also explained that the adjustment became necessary because the gap between the MPR and prevailing market rates had weakened the effectiveness of monetary policy transmission through the financial system.
It clarified:
"The recalibration of the corridor does not constitute a change in the current monetary policy stance, but rather an operational reset to enhance the effectiveness of monetary policy and support the transition to an inflation targeting framework."
As banks respond to the new monetary policy environment, Ecobank customers may see lower returns on their deposits under the revised savings rates.
Banks charge on loans
Earlier, Legit.ng reported that some Nigerian bank customers were paying lending rates as high as 60%, while savings customers earned interest rates as low as 2.7%.
The Central Bank of Nigeria has begun publishing lending rates across Deposit Money Banks (DMBs) to promote transparency and help businesses make informed borrowing decisions.
January data showed that businesses in sectors including manufacturing, mining and quarrying, public utilities, finance and insurance, and construction faced lending rates of up to 60% at some banks.
Source: Legit.ng
