NIGERIAN BANKS EASE PEAK LOAN RATES TO 33.16% IN JUNE

Nigeria’s average maximum lending rate fell to 33.16 per cent in June 2026 from 34.78 per cent in May, according to the latest Central Bank of Nigeria Money Market Indicators.

The modest decline comes as the Monetary Policy Committee has held the Monetary Policy Rate steady at 26.5 per cent since February, after a 50-basis-point cut earlier in the year. Despite the monthly easing, rates remain well above the 29.51 per cent recorded in June 2025, a year-on-year rise of 3.65 percentage points.

The maximum lending rate is the highest interest commercial banks charge on loans and serves as a key gauge of credit conditions. High rates typically limit borrowing, investment and business expansion. This marks only the second notable drop in lending rates this year after the figure climbed from 32.68 per cent in January to a peak of 35.17 per cent in February and stayed elevated through April.

Analysts note that banks have been slow to pass on policy rate changes to customers, continuing to constrain private-sector credit even as macroeconomic conditions show signs of improvement.