Banks Cut Maximum Lending Rate to 33.16% as CBN Holds MPR Steady

The average maximum lending rate charged by Nigerian commercial and merchant banks dropped to 33.16% in June 2026, down from 34.78% in May, according to the Central Bank of Nigeria's latest Money Market Indicators report. The decline is only the second meaningful drop in the maximum lending rate in 2026, even as the Monetary Policy Committee held the benchmark Monetary Policy Rate unchanged at 26.5% for its second consecutive meeting.

Lending Rate Trends and MPC Decision

The maximum lending rate opened 2026 at 32.68% in January, climbed to 35.17% in February, and held near that level through April before beginning to ease. In June 2025, the average maximum lending rate stood at 29.51%, meaning borrowers are still paying roughly 3.65 percentage points more than a year earlier despite the recent dip.

CBN Governor Olayemi Cardoso said the committee's decision to keep all policy parameters steady was aimed at preserving macroeconomic stability while giving earlier measures more time to work through the economy. The prime lending rate, which applies to customers with stronger credit profiles, also remains elevated but varies widely across banks.

Bank-by-Bank Lending Rates

The CBN data published the latest prime and maximum lending rates for individual banks. Access Bank: prime 25.50%, max 32.00%. Alpha Morgan Bank: 27.00%, 33.00%. Citi Bank: 19.00%, 20.00%. Coronation Merchant Bank: 25.00%, 28.00%. Ecobank: 26.75%, 48.00%. Quest Merchant Bank: 5.00%, 32.50%. FCMB: 31.00%, 46.00%. Fidelity Bank: 30.00%, 36.00%. First Bank of Nigeria: 26.00%, 38.00%. FSDH Merchant Bank: 22.00%, 33.00%. Globus Bank Ltd: 28.50%, 33.00%. Greenwich Merchant Bank: 23.60%, 29.50%. Guaranty Trust Bank: 21.00%, 32.00%. Keystone Bank Ltd: 30.50%, 36.00%. Nova Bank: 33.78%, 39.00%. Optimus Bank: 28.50%, 35.00%. Parallex Bank: 30.00%, 32.50%. Polaris Bank: 29.00%, 41.00%. Premium Trust Bank: 28.00%, 36.00%. Providus Bank: 26.50%, 35.00%. Rand Merchant Bank Nigeria Ltd: 19.50%, 19.50%. Signature Bank: no data reported. Stanbic IBTC: 1.00%, 60.00%. Standard Chartered Bank: 27.00%, 29.00%. Sterling Bank: 26.00%, 33.50%. SunTrust Bank: 22.00%, 37.00%. Tatum Bank: 41.65%, 46.65%. United Bank for Africa: 28.50%, 32.00%. Union Bank: 16.95%, 38.00%. Unity Bank: 30.00%, 38.00%. Wema Bank: 32.50%, 34.50%. Zenith Bank: 23.62%, 32.00%.

Manufacturers Still Under Pressure

Manufacturers continue to feel the pressure of expensive credit. Bank lending to the sector fell sharply between 2024 and 2025, according to earlier reports. The slight easing in the maximum lending rate has not translated into a meaningful relief for businesses that rely on bank financing.

The decline in the average maximum lending rate, though modest, offers some respite after months of elevated borrowing costs. With the MPR remaining at 26.5% and inflation still a concern, further cuts may depend on how quickly earlier policy measures work through the economy. For Nigerian businesses and consumers, the cost of credit remains high compared to a year ago, and any sustained reduction will require more consistent easing in the months ahead.