The Central Bank of Nigeria’s latest disclosure of commercial and merchant banks’ lending rates shows that the cost of borrowing continues to vary widely across the banking industry, with prime lending rates ranging from as low as 19.5 percent to more than 40 percent, depending on the lender and the borrower’s credit profile.
The figures, published on July 3 under the apex bank’s consumer protection and transparency framework, come ahead of next week’s Monetary Policy Committee (MPC) meeting, where most analysts expect policymakers to leave the benchmark Monetary Policy Rate (MPR) unchanged at 26.5 percent after a 50-basis-point reduction in February.
While the rate cut was expected to gradually ease financing conditions, the latest data suggest borrowing costs remain elevated for many customers.
The CBN’s monthly publication is designed to give households, small businesses and corporate borrowers greater visibility into how banks price loans before they approach a lender.
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