CBN publishes updated lending rates for Access, GTBank, UBA, Zenith, and other banks
By Aboki Forex —
The Central Bank of Nigeria has released updated prime and maximum lending rates for commercial and merchant banks, giving borrowers a clearer picture of what credit costs across the banking sector. The data, published on July 3, is part of the CBN's transparency and consumer protection framework to help households, small businesses, and corporate borrowers compare loan costs before approaching any lender.
Two categories of lending rates
The CBN disclosure covers two categories: prime lending rates, which are reserved for customers with strong credit standings, and maximum lending rates, which apply to borrowers carrying higher perceived risk. Among the major commercial banks, Guaranty Trust Bank offered the most competitive prime lending rate at 21.00%, with a maximum of 32.00%. Zenith Bank followed with a prime rate of 23.62% and a maximum of 32.00%, while Access Bank stood at 25.50% and 32.00% respectively. United Bank for Africa set its prime rate at 28.50% and capped its maximum at 32.00%, and First Bank of Nigeria charged 26.00% as its prime rate with a ceiling of 38.00%.
Highest and lowest rates across the sector
On the higher end of the scale, Tatum Bank recorded a prime lending rate of 41.65% and a maximum of 46.65%, while Nova Bank posted a prime rate of 33.78% with a maximum of 39.00%. Wema Bank listed 32.50% as its prime rate and 34.50% as its ceiling, and FCMB disclosed a prime rate of 31.00% and one of the sector's steeper maximum rates at 46.00%. The widest spread between prime and maximum rates was reported by Stanbic IBTC, whose prime rate stood at just 1.00% against a maximum lending rate of 60.00%, the highest recorded maximum in the current disclosure. Ecobank also maintained a notably elevated ceiling at 48.00%, with a prime rate of 26.75%.
Merchant bank rates and notable outliers
Among merchant banks, Rand Merchant Bank Nigeria posted identical prime and maximum rates of 19.50%, suggesting a narrow risk differentiation in its loan book. Quest Merchant Bank disclosed an unusually low prime rate of 5.00% against a maximum of 32.50%. Signature Bank did not publish figures for either category. Other lenders showed a wide range: Citi Bank offered a prime rate of 19.00% and a maximum of 20.00%, while Union Bank posted a prime rate of 16.95% with a maximum of 38.00%. Polaris Bank set its prime rate at 29.00% and maximum at 41.00%, and Keystone Bank listed 30.50% and 36.00% respectively.
What this means for borrowers and the naira
For Nigerian borrowers, the wide gap between prime and maximum rates across banks highlights the importance of shopping around for credit. The CBN's transparency push allows consumers to identify lenders offering competitive terms before committing to loans. With the highest maximum rate hitting 60.00% at Stanbic IBTC and the lowest prime at 1.00% at the same bank, the data underscores how credit risk assessment varies sharply across institutions, directly affecting the cost of borrowing for businesses and individuals in the current economic environment.