Nigerian banks raise lending rates despite benchmark cuts
By the AFREEQUE newsroom, based on Vanguard
Illustrative image · Darlene Alderson · Pexels · Licence PexelsNigerian banks raised their prime lending rates in eight of the 11 economic sectors studied, despite successive cuts to the Central Bank of Nigeria’s benchmark rate, which fell to 23% in September 2026. Agriculture, construction and manufacturing were among the sectors affected, according to figures published by the central bank and reported by Vanguard.
Average prime lending rates charged by Nigerian banks rose in eight of the 11 economic sectors studied, despite cuts to the Central Bank of Nigeria’s (CBN) benchmark rate, Vanguard reports, citing rate schedules published by the central bank. Between August 2025 and October 2026, the average rate for agriculture, forestry and fishing rose from 23.44% to 24.77%, while the rate for construction increased from 25.25% to 26.40%.
Rates also rose in manufacturing, where the average reached 24.36%, up from 23.79%, as well as in real estate, education, health and social work, public administration, and finance and insurance. Prime rates are those offered to businesses considered the most creditworthy. They edged down in arts and entertainment, and in the oil and gas sector, according to Vanguard.
The CBN cut its benchmark rate from 27.5% to 27% in September 2025, then to 26.5% in February 2026 and to 23% in September 2026. The latest cut of 3.5 percentage points came after inflation fell from 15.93% in May to 15.39% in August, then to 14.63% in September 2026. Analysts warn that cuts to the benchmark rate may take time to feed through to credit conditions, the newspaper reports.
