CEM REPORT, FINANCE | The maximum lending rate by banks in Nigeria increased month-to-month (M-o-M) by 1.12% by the close of February 2023. The increase translates to 28.75 per cent in February from 27.63 per cent maximum lending rate in January 2023 indicative of a high cost of borrowing by bank customers.
This was contained in the latest Money Market Indicators released by the Central Bank of Nigeria (CBN).
The increase which follows the hike in its Monetary Policy Rate, however is a drop of 1.98 per cent when compared to 30.73 per cent reported in February 2022. Also the rates recorded in the first two months of 2023 is a drop from 29.13 per cent at the close of 2022.
The CBN report further reveals that prime lending rate to most credit-worthy customers dropped to 13.62 per cent in February 2023 from 13.67 per cent in January 2023.
Maximum lending rate refers to the rate charged by commercial banks for lending to customers with low credit rating.
A comparison of other rates between January and February reveals that there were increase and decrease in rates
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Treasury bill rate was 2.09 per cent an increase from 1 39 per cent, saving deposit rate was 4.30 from 4.29 per cent; one-month deposit rate was 7.56 per cent from 8.18 per cent; three months deposit rate was 7.78 per cent from 8.76 per cent;, six months deposit rate was 8.91 per cent from 7.35 per cent;, while 12 months deposit rate was 8.84 per cent from 7.79 percent.
