CBN Data Shows Banks' September Lending Rates, Stanbic Tops Maximum at 60%

The Central Bank of Nigeria has published September lending rates for commercial and merchant banks operating in Nigeria. Stanbic IBTC recorded the highest maximum lending rate at 60.00%, while Tatum Bank topped the prime lending rate category at 37.07%.

The data covers prime lending rates for customers banks consider lower risk and maximum lending rates for borrowers seen as higher risk. Banks charged from single digits to as high as 60%, depending on perceived credit risk.

Top Rates

Stanbic IBTC's maximum rate was 60.00%, while its prime rate was 16.00%. Ecobank posted a maximum of 48.00% and prime of 26.75%. Tatum Bank led prime at 37.07%, with maximum at 42.07%. Nova Bank followed with prime 33.78% and maximum 39.00%, while Wema Bank reported 32.50% and 34.50%. FCMB recorded prime 31.00% and maximum 46.10%. Keystone Bank posted 30.50% and 36.00%, and Fidelity Bank reported 30.00% and 36.00%.

Lower Rates

Guaranty Trust Bank listed prime at 3.00%, though maximum reached 35.00%. Quest Merchant Bank reported both prime and maximum at 5.00%. Citi Bank had a maximum of 20.00% and prime of 19.00%. Zenith Bank's prime stood at 23.71% with maximum 32.00%, while First Bank of Nigeria reported 26.00% and 38.00%. United Bank for Africa recorded 28.50% and 32.00%, and Access Bank posted 25.50% and 32.00%.

Full September Lending Rates

Access Bank: prime 25.50%, maximum 32.00%. Alpha Morgan Bank: 23.00%, 32.00%. Citi Bank: 19.00%, 20.00%. Coronation Merchant Bank: 12.00%, 28.00%. Ecobank: 26.75%, 48.00%. Quest Merchant Bank: 5.00%, 5.00%. FCMB: 31.00%, 46.10%. Fidelity Bank: 30.00%, 36.00%. First Bank of Nigeria: 26.00%, 38.00%. FSDH Merchant Bank: 23.00%, 33.00%. Globus Bank Ltd: 28.50%, 33.00%. Greenwich Merchant Bank: 27.90%, 32.50%. Guaranty Trust Bank: 3.00%, 35.00%. 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%, 39.90%. Premium Trust Bank: 28.00%, 42.00%. Providus Bank: 26.50%, 35.00%. Signature Bank: maximum 30.00%. Stanbic IBTC: 16.00%, 60.00%. Standard Chartered Bank: 27.00%, 29.00%. Sterling Bank: 26.00%, 33.50%. SunTrust Bank: 22.00%, 37.00%. Tatum Bank: 37.07%, 42.07%. United Bank for Africa: 28.50%, 32.00%. Union Bank: 16.95%, 38.00%. Wema Bank: 32.50%, 34.50%. Zenith Bank: 23.71%, 32.00%.

MPC Cut

The September disclosures follow the CBN Monetary Policy Committee's decision to cut the benchmark Monetary Policy Rate by 350 basis points to 23% from 26.5%. CBN Governor Olayemi Cardoso announced the decision at the end of the committee's 307th meeting in Abuja, citing easing inflation and improved foreign exchange conditions as key factors.

The wide spread between prime and maximum rates shows that credit risk remains a major factor in what Nigerian businesses pay to borrow. Lower prime rates may help strong corporate borrowers, but higher maximum rates still weigh on smaller firms and consumers seen as riskier.