Nigeria's Lending Rate Hits 20-Year High at 32.68%

As of January 2026, Nigeria's average maximum lending rate has surged to 32.68%, marking a record high not seen in 20 years, according to data from the Central Bank of Nigeria (CBN). This increase follows a gradual reduction in the monetary policy rate (MPR), which currently stands at 26.50%.

The average maximum lending rate was 29.79% in January 2025 and 29.32% in December 2025. The CBN aims to ensure fair lending practices and protect borrowers from excessive interest rates.

The lending rate has been influenced by various factors, including inflation and the cost of credit. Analysts predict further increases in lending rates despite stabilization in the foreign exchange market.

The average prime lending rate has also risen to 19.54% in January 2026, the highest since 2006. The CBN's efforts to address inflation and stabilize the naira are ongoing, with the bank regularly reviewing lending rates in response to funding costs.