Amid 27.50% MPR, Economic Challenges, Prime Lending Rate Rise to 18.19%

The Central Bank of Nigeria (CBN) has raised the average prime lending rate for bank customers to 18.19% in June 2025, amidst a Monetary Policy Rate (MPR) of 27.50% and economic challenges. This marks the highest average prime lending rate since January 2025.

The CBN has maintained a tight monetary policy stance, with the MPR remaining at 27.50% despite calls for a gradual easing. The increase in the prime lending rate has been attributed to efforts to tackle inflation and stabilize the local currency.

Analysts have noted that the high lending rates could pose challenges for businesses, especially small enterprises, as borrowing becomes more expensive. The increase in the prime lending rate has impacted various banks, with rates ranging from 30% to 32% in June 2025.

The CBN's decision to raise the prime lending rate reflects its efforts to address inflation and economic challenges in the country.