Nigerian Businesses Struggle with 36% Interest Rates, Economic Pressures

Nigerian businesses are facing challenges servicing loans due to soaring interest rates reaching up to 36%. The high lending rates, ranging from 29% to 36%, are hindering economic growth, investment, and job creation, particularly affecting SMEs.

Factors such as high inflation, default risks, increased funding costs, and tight monetary policies set by the Central Bank of Nigeria (CBN) contribute to the elevated interest rates. Data from early 2025 revealed that 75% of businesses identified high interest rates as a significant operational constraint.

Commercial loan rates at some banks range from 32% to 36%, adding pressure on borrowers. This situation underscores the struggle of Nigerian businesses amid economic challenges.