Banks hike lending rates for top borrowers despite CBN cuts

Nigerian banks have raised average prime lending rates in eight of 11 key sectors despite a series of interest rate cuts by the Central Bank of Nigeria (CBN), Vanguard reports.

The CBN has cut the Monetary Policy Rate by 450 basis points since September 2025. The latest cut, of 350 basis points to 23 per cent, came in September 2026, as inflation eased to 14.63 per cent.

However, the newspaper’s analysis of CBN data shows that prime rates for top borrowers rose between August 2025 and October 2026 in sectors including agriculture, construction, manufacturing, real estate and education.

Agriculture recorded the biggest increase, with rates rising to 24.77 per cent from 23.44 per cent.

Average maximum lending rates fell to 32.58 per cent from 33.78 per cent, and deposit rates also declined.

Analysts blamed the gap on uneven transmission of monetary policy.

“Consequently, the benefits of lower policy rates may take longer to materialise,” said Nnamdi Nwizu, Co-Founder of Comercio Partners.