Nigeria's Lending Rate Falls to 29.19% Amid Economic Relief
The average maximum lending rate in Nigeria's banking sector decreased to 29.19% in August 2026, down from 33.16% in July 2026, marking a 3.96% drop. This is the lowest rate recorded this year and follows a reduction in the Monetary Policy Rate (MPR) from 27% to 26.50%.
The maximum lending rate is essential for fair lending practices and protects borrowers from excessive interest rates. Data from the Central Bank of Nigeria (CBN) indicated that the maximum lending rate peaked at 35.17% in February 2026.
During this period, Stanbic IBTC had the highest general maximum lending rate at 60%, followed by Ecobank at 48%, and FCMB Bank. The International Monetary Fund (IMF) previously noted that banks tend to raise lending rates quickly during monetary tightening but are slower to reduce them when policies are eased.
The average maximum lending rate in 2025 was 29.32%.
Plus234Feed summary based on reporting from This Day. Read the original report below.
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