Nigeria's Lending Rate Drops to 33.16% Amid Policy Pause

The average maximum lending rate charged by Nigerian banks fell to 33.16% in June 2026, down from 34.78% in May, as the Central Bank of Nigeria (CBN) continued its monetary policy pause amid improving macro-economic conditions. The CBN's latest Money Market Indicators revealed that while borrowing costs are still high, the reduction in maximum lending rates aligns with the Monetary Policy Committee's (MPC) decision to keep the Monetary Policy Rate (MPR) at 26.50% since February.

The average maximum lending rate was 29.51% in June 2025, indicating a year-on-year increase of 3.65 percentage points. The MPC's recent meeting resulted in a unanimous decision to retain all policy parameters, considering exchange rate stability and moderating inflation.

CBN Governor Mr. Olayemi Cardoso stated that the decision reflected a careful assessment of domestic and global economic conditions. The average maximum lending rate began the year at 32.68% and peaked at 35.17% in February, highlighting the slow transmission of monetary easing to borrowers.