Recall that the Central Bank of Nigeria’s (CBN) increasing Monetary Policy Rate (MPR) has caused the Nigerian financial services industry, particularly merchant and commercial banks, to modify their lending rates.
A total of 25 out of 31 lending financial institutions provide different economic sectors with maximum borrowing interest rates (ranging from 25 to 40 per cent) above the MPR.
For instance, FCMB, with an interest rate of 1.15 per cent on savings deposits, prices its loans at a maximum of 40 per cent and a prime lending rate of 22.50 per cent.
FSDH Merchant Bank allows prime customers to access loans at 18 per cent, while offering a maximum lending rate of 43 percent.
