Despite Cut in MPR, Average Maximum Lending Rate Rises to 32.62%.
Maximum lending rate refers to the highest permissible interest rate that lenders can charge borrowers.
The rate is crucial for ensuring fair lending practices and protecting borrowers from excessive interest rates.
According to the CBN Money Market Indicators, the average maximum lending had opened January 2026 at 32.68 per cent when MPR was at 27 per cent, and reached a peak of 35.17 per cent in March 2026 as MPR stood at 26.50 per cent.
An investigation by THISDAY revealed that most Nigerian banks’ maximum lending rate remained flat between September and October 9, 2026 amid the 350 basis points MPR cut by MPC. Specifically, between September 4, 2026 and October 9, 2026, “Manufacturing sector” maximum lending rates of Access Bank, Alpha Morgan Merchant Bank, Coronation Merchant Bank and Ecobank remained flat at 32.28 per cent, 35.00 per cent, and 35 per cent respectively. FCMB Bank, Fidelity Bank Plc, First Bank of Nigeria also posted 41.40 per cent, 36 per cent and 36 per cent, respectively between September 4, 2026 and October 9, 2026… In the period under review, Citi Bank saw its Manufacturing sector maximum lending rate drop to 19 per cent from 20 per cent, while Quest Merchant Bank Manufacturing sector maximum lending rate moved to 30 per cent from 35 per cent. In June 2026, the International Monetary Fund (IMF) had expressed that Nigerian banks are quick to raise lending rates when the CBN tightens monetary policy, but slow to reduce borrowing costs when rates are eased.
MSEApp News is publishing an original rewrite of this tip for readers, based on reporting associated with THISDAY.