Nigeria's Lending Rate Falls to 34.78% Amid Policy Changes

As of May 2026, the average maximum lending rate in Nigeria has dropped to 34.78%, a decrease from 35.17% in April 2026. This reduction is attributed to the Central Bank of Nigeria's (CBN) decision to lower the monetary policy rate (MPR) to 26.50% in late February 2026.

The MPR was previously set at 27%. The CBN's actions aim to sustain disinflation and improve the external position of the naira.

Despite this reduction, the average maximum lending rate remained flat at 35.17% from February to April 2026. The International Monetary Fund (IMF) noted that banks tend to raise lending rates rapidly when monetary policy tightens but adjust borrowing costs more slowly during easing cycles.

The average maximum lending rate has fluctuated significantly over the years, with historical highs and lows recorded. The CBN's current efforts reflect its commitment to addressing persistent inflation and stabilizing the local currency.