Stanbic IBTC adjusts loan, deposit rates after CBN cuts MPR to 23%

Stanbic IBTC Bank has notified retail, commercial and corporate customers that its interest rates have changed after the Central Bank of Nigeria cut the benchmark Monetary Policy Rate by 350 basis points. The new rates took effect on September 22, 2026, the same day the CBN Monetary Policy Committee approved the reduction in the MPR from 26.50 percent to 23 percent.

The bank said the repricing affects both loans and deposit products linked to the MPR. It is an early sign of how the CBN’s rate cut is moving through the financial system to customers.

Borrowers get relief

For borrowers, the reduction could lower interest payments on variable-rate loans. These include commercial loans, overdrafts and mortgages whose pricing is tied to the CBN benchmark. Commercial banks had previously priced some prime lending facilities at about 27 percent to 30 percent. The MPR cut is expected to put downward pressure on those rates as banks adjust pricing to reflect the new benchmark.

Depositors face lower returns

Depositors may also see lower returns on some interest-bearing accounts. Stanbic IBTC said the repricing would affect products on both sides of its balance sheet. Customers holding variable-rate savings accounts, fixed deposits and call accounts may see reductions in the interest paid on their funds.

CBN policy shift

The CBN, at its September 21-22 meeting, reduced the MPR by 350 basis points to 23 percent in its first major rate cut after a prolonged period of tight monetary policy. The committee retained the Cash Reserve Ratio for deposit money banks at 45 percent and adjusted the asymmetric corridor around the MPR to +50/-300 basis points. The move marked a major shift in the central bank’s monetary policy stance as inflationary pressures showed signs of easing.

The transmission of monetary policy through commercial banks is important because changes in the MPR affect the cost of borrowing, returns on savings, investment decisions and, ultimately, economic activity. Lower lending rates could support businesses and households that rely on bank credit, although the actual benefit will depend on how quickly and fully banks pass the reduction on to customers. At the same time, lower deposit rates could reduce returns for savers and investors who keep funds in interest-bearing bank accounts and other short-term instruments.

The development also highlights the balance banks must maintain between supporting credit growth and managing funding costs as the new lower interest-rate environment takes effect.