Nigeria's Lending Rate Drops to 33.16% in June 2026

In June 2026, Nigeria's average maximum lending rate fell to 33.16%, down from 34.78% in May, indicating a modest reduction in borrowing costs. This change follows the Central Bank of Nigeria's (CBN) decision to keep the Monetary Policy Rate unchanged at 26.5%, a position maintained since February after a 50-basis-point cut.

Despite this decline, the lending rate is significantly higher than the 29.51% recorded in June 2025, marking a year-on-year increase of 3.65 percentage points. The maximum lending rate, which represents the highest interest rate banks charge on loans, is a key indicator of credit conditions.

The Monetary Policy Committee (MPC) of the CBN unanimously decided to retain all monetary policy parameters, citing factors such as exchange rate stability and moderating inflation. CBN Governor Olayemi Cardoso stated that the decision aims to preserve macroeconomic stability.

Businesses, particularly manufacturers and small enterprises, continue to express concerns over high borrowing costs amid ongoing economic challenges.