Bank customers are paying 60 per cent maximum lending rates for loans and getting maximum of 2.7 per cent interest on their savings in deposit money banks (DMBs), the Central Bank of Nigeria (CBN) data has shown.
The CBN report released at the weekend and backed by the Monetary Policy Committee, explains that it decided that henceforth the lending rates obtainable in all Deposit Money Banks (DMBs) be made public to guide business decisions.
Its report captured the applicable rates for each of the commercial banks for January.
The report, released at the weekend in furtherance of the apex bank’s transparency and full disclosure stance showed that manufacturing, mining and quarrying, public utilities, finance and insurance as well as construction pay maximum rate of 60 per cent in some banks.
Also, oil and gas loans are priced at 46 per cent, capital market loans at 19.5 per cent and power and energy loans priced at 48 per cent per annum.
Education loans are priced at 23 per cent while loans to government are priced at 19 per cent while real estate loans are priced at 46.5 per cent.
General commerce, borrow at 45 per cent; water supply sewage, waste management and remediation activities borrow at 36 per cent while information and communication borrow at 30 per cent.
Stakeholders observed that despite 27 per cent monetary policy rate (MPR) – benchmark interest rate – banks were paying less interest to depositors with rising spread between average term deposit and average maximum lending rates.
Average interest rate on demand deposits range from 0.48 to 7.33 per cent while average interest on savings deposit range from 2.70 per cent to 8.15 per cent.
The spread gap, indicated that customers are paying far higher fee than they are getting from their banks.
The rising lending rates, analysts said, have led to upward pressure on market rates and cost of production for the manufacturing sector. They insisted that the rate at which a customer is charged for loans is dependent on the perceived risk level attached to such customers. That explains why prime customers get loans at relatively cheaper rates.
However, the Monetary Policy Rate (MPR), which is the benchmark interest rate at which the CBN lends to the commercial banks, is currently at 27 per cent.
Speaking at the end of the 303rd Monetary Policy Committee (MPC) meeting, Governor, Central Bank of Nigeria, Olayemi Cardoso, announced the retention of the Monetary Policy Rate (MPR) at 27.0 per cent, adjusted the Standing Facility corridor around the MPR at +50/-450 basis points and retained the Cash Reserve Requirement (CRR) for Deposit Money Banks at 45.00 per cent, Merchant Banks at 16.00 per cent, and 75.00 per cent for non-TSA public sector deposits.
The MPC also kept the Liquidity Ratio unchanged at 30.00 per cent.
The committee’s decision was underpinned by the need to sustain the progress made so far towards achieving low and stable inflation. The MPC reaffirmed its commitment to a data-driven assessment of developments and outlook to guide future policy decisions.
Analysts said a lower MPR is expected to consolidate recent macroeconomic gains while providing headroom for credit expansion to the real sector.
An MPC member, Aku Odinkemelu earlier called for enhanced coordination between monetary and fiscal authorities to address underlying structural vulnerabilities and proactively manage the significant upside risks to the outlook.
Despite rising cost of lending, the Nigerian private sector remained in growth territory at the end of 2025 as improvements in customer demand fed through to higher new orders, output and purchasing activity, the Purchasing Managers’ Index (PMI) has shown.
The report showed that employment also increased, but the rate of job creation remained marginal. Inflationary pressures picked up modestly in December but remained generally close to recent lows. Meanwhile, business confidence improved sharply.
“The headline figure derived from the survey is the Purchasing Managers’ Index (PMI). Readings above 50.0 signal an improvement in business conditions on the previous month, while readings below 50.0 show a deterioration,” it said.
It said the headline PMI posted 53.5 in December, little-changed from 53.6 in November and signaling a solid monthly improvement in business conditions as 2025 drew to a close. The latest strengthening in operating conditions was the thirteenth in as many months, and broadly in line with the average for 2025 as a whole.
Head of Equity Research West Africa at Stanbic IBTC Bank, Muyiwa Oni, said: “We now see the Nigerian economy growing by 3.8 per cent year-on-year in 2025 and 4.1 per cent year-on-year in 2026. Both Manufacturing and Services are likely to see higher growth in 2025 compared to 2024 levels, based on the results from the PMI surveys so far this year,” he said.
He explained that elsewhere, the government has been visible in infrastructure, livestock development, easing trade constraints, and attracting investments in oil & gas and manufacturing.
“Aside from that, the Dangote refinery is expected to continue to have forward-linkage impact on other sectors of the economy. Additionally, likely lower interest rates in line with lower inflation and exchange rate stabilization should support private consumption and business investments in 2026. Because of these factors, we see more sectors contributing to real GDP growth rate in 2026 compared to 2025, likely translating to an improvement in the quality of lives of the citizens compared to 2025,” he added.
- Media Report