Banking
CBN Report Shows Nigerian Banks Charge 49.50% Interest Rate
By Dipo Olowookere
A new report by the Central Bank of Nigeria (CBN) has revealed that some deposit money bank’s (DMBs) in the country charge their customers as high as 49.50 percent per annum as interest rate.
The CBN report titled: ‘Deposit and Lending Rates in the Banking Industry’ showed the deposit and lending rates obtainable in commercial and merchant banks.
According to The Nation, which obtained the report, the apex bank explained that the disclosure was in furtherance of the transparency and full disclosure stance of the regulator.
It also aligns with the Monetary Policy Committee (MPC) decision that the lending rates obtainable in Deposit Money Banks (DMBs) be made public to guide business decisions.
The applicable rates for banks as at May 18 showed that while some banks lend cheaply to prime borrowers, their maximum lending rate to other category of borrowers went as high as 49.50 percent per annum for the agricultural sector.
The report showed that Union Bank Plc lends to public utilities sector at 17.50 percent, prime rate, and 24.50 percent maximum rate. The bank lends for general purpose at 17.50 percent, prime, and 52.50 percent maximum.
Average rate for demand deposit at Union Bank is 0.50 percent; 4.20 percent for savings and 12.48 percent for demand deposit. The bank however, lends to agriculture at 23.50 percent, prime, and has 49.50 percent as its maximum lending rate for the sector. Mining and quarrying borrow at 17.50 percent, prime, and 33 percent maximum. Power and Energy borrow at 22 percent, prime, and 22 percent, maximum, while oil and gas borrow at 7.50 percent, prime, and 26 percent maximum.
The CBN’s data showed that Unity Bank pays the highest average interest rate of 16 per cent per annum to depositors on time deposit, while GTBank pays the lowest of 7.13 per cent to time depositors.
First City Monument Bank (FCMB) lends at three per cent to oil and gas sector, prime rate, but its maximum rate to the sector is 30 per cent. Stanbic IBTC Bank lends at 11 per cent to oil and gas sector, prime rate, and has 30 per cent as its maximum rate to the sector.
The data showed that Skye Bank lends at nine per cent to government, prime rate, and 31 per cent maximum rate to the market segment.
Diamond Bank lends to oil and gas at 20 per cent prime, and has 30 per cent as its maximum lending rate to the sector.
For FirstBank, its average interest rate on demand deposit is zero per cent; 4.20 per cent average interest rate for savings deposit and 7.50 per cent for time deposit. The bank lends to agriculture at nine per cent, prime, 27 per cent maximum; manufacturing borrows at 20 per cent, prime, and 28 per cent maximum, while real estate borrows at 20 per cent, prime, and 27 per cent maximum. Finance and insurance borrow at 20 per cent prime, and 27 per cent maximum, while education borrows at 19 per cent prime, and 27 per cent maximum.
The power sector borrow at 19 per cent prime, 27 per cent maximum while capital market borrows from the bank at nine per cent prime, and 27 per cent maximum; oil and gas borrow at 20 per cent prime, and 28 per cent maximum.
For United Bank for Africa (UBA PLc), its average interest rate on deposit is 0.28 per cent; the lender pays 4.20 per cent on savings deposit, and 10.86 per cent for time deposit. The bank lends to agriculture at seven per cent, prime, and 25 per cent, maximum; manufacturing, 19 per cent, prime and 29 per cent maximum.
Access Bank’s average interest rate on demand deposit is 0.05 per cent; savings deposit is 4.20 per cent while time deposit is 11.84 per cent. The bank’s prime lending rate for agriculture, forestry, and fishing is 19 per cent; while maximum lending rate for the sector is 30.50 per cent. The bank’s prime lending rate to manufacturing is 14 per cent; while 30.5 per cent is its maximum lending rate. The lender lends to government at 16 per cent, prime, and 26.50 per cent maximum rate.
Its loans to education sector is priced at 19 per cent; and 30.50 per cent is the maximum rate. Power ad energy, oil and gas borrow at 15 per cent form the bank, prime while its maximum rate is 30.50 per cent.
Guaranty Trust Bank Pls’ average interest rate on demand deposit is 2.90 per cent; savings deposit at 4.20 per cent and time deposit at 7.713 per cent. The bank lends to agriculture at seven per cent, prime, 21 per cent maximum rate.
Manufacturers borrow from GTBank at 12 per cent, prime, 25 per cent maximum. The bank lends to real estate at 19 per cent, prime, 23 per cent maximum, while finance and insurance sector borrow from the lender at 21 per cent prime, 25 per cent, maximum. Government borrows at 18 per cent, prime, 18 per cent, maximum rates.
Speaking on the lending rates, Director-General, Lagos Chamber of Commerce and Industry, Muda Yusuf, said such rates further depresses investment and hurt the economy. According to him, it further alienates and causes disconnection between the banks and their customers.
“It will be an investment suicide for any businessman to borrow at such rates. It is an abnormality to lend at such rates in an economy that wants to create jobs and recover from recession. I urge the CBN to critically look at those rates and take immediate decision that will boost the real sector,” he said.
Yusuf added: “If you want the private sector to be engine of growth, you have to deal with interest rate. Lending to customers at such rates will further increase the level of default of borrowers because the higher the lending rate, the higher the default rate”.
On banks’ claims that their cost of operations is high, he said the apex bank can also reduce the Cash Reserve Ratio and Monetary Policy Rate (MPR) to reduce cost of funds for banks.
“Banks need to create credit that supports the economy, by boosting production and reducing poverty,” Yusuf said.
By Modupe Gbadeyanka
A platform to enable cross-border intra-Africa payments for individuals, merchants, and traders in Nigeria and Ghana is being designed by Onafriq Nigeria Payments Limited in partnership with the Pan-African Payment and Settlement System (PAPSS).
The platform, currently in its pilot stage, is the first wallet-based outbound payments scheme, which is fully in Naira and instant, without relying on hard currency conversion.
The parties are working together with banks and mobile money operators in the West Africa nations.
The Central Bank of Nigeria (CBN) has already approved this initiative, which will benefit small and medium enterprises (SMEs), the real engine of intra-African trade, as they will now have access to a faster, cheaper way to reach customers and suppliers across the border.
By reducing barriers to cross-border trade, the new service will allow these businesses to grow their addressable markets and activity. From December 1, this service will be fully operational for a 6-month period.
Through the partnership with PAPSS, Onafriq, which is a CBN licensed payment service provider, is supporting the operationalization of the Africa Continental Free Trade Area (AfCFTA) mandate. The mandate itself is driving tariff-free trade for the 54 member states of AfCFTA. Within the partnership itself, Onafriq provides the mobile money rails, with an ecosystem consisting of over 1 billion mobile wallets.
Meanwhile, PAPSS brings a network of over 160 commercial banks, representing an ecosystem of more than 400 million bank accounts across its 19 African countries of operation. The two partners are essentially seamlessly connecting two worlds: mobile money and banking. As a consequence, intra-African trade transactions will take place more easily and opportunities will be created.
Currently, Africa is made up of bank and mobile-led markets, with siloes often inhibiting transactions between these economies. However, this partnership will remove these boundaries. With over one billion mobile wallets and 500 million bank wallets across Africa, this partnership will allow for cross-border collaboration at scale.
This partnership builds on Onafriq and PAPSS’ existing partnership for payments into Ghana, announced earlier this year.
“Our work with PAPSS shows what collaboration at scale can unlock—seamless, secure connections between banking systems and mobile money ecosystems. This is how we open bi-directional trade corridors, reduce costs for businesses, and give African enterprises the rails they need to trade with confidence in their own currencies. The vision is continental, but it starts with practical steps like this one,” the Managing Director for Anglophone West Africa, Mxolisi Msutwana, said.
The Chief Information Officer for PAPSS, Ositadimma Ugwu, added, “Too often, African businesses and individuals see borders as roadblocks instead of opportunities. With this step, we’re challenging that mindset, giving Nigerians the ability to send value next door with the same ease as sending a text message. Our vision is simple: make Africa’s borders invisible to payments. This pilot makes that a reality, moving us closer to a continent where payments don’t pause at the border.”
By Adedapo Adesanya
Mrs Ifeyinwa Osime has been appointed as the chairman of the board of Access Bank Plc, following the retirement of Mr Paul Usoro on January 29, according to a statement to the Nigerian Exchange (NGX) Limited.
Mrs Osime, an accomplished legal practitioner, joined Access Bank’s board in November 2019 as an independent non-executive director and had chaired the Board Human Resources and Sustainability Committee and the Governance, Nomination, and Remuneration Committee.
This role made her contribute significantly to bank’s corporate governance, leadership development, and sustainability initiatives.
In addition to her role at Access Bank, Mrs Osime is a Director at Ebudo Trust Limited and a Partner at McPherson Legal Practitioners, where she advises on corporate and commercial matters and contributes to strategic leadership.
She is also a member of the Nigerian Bar Association, Women Corporate Directors, Nigeria Chapter, and Chartered Institute of Directors Nigeria, where she serves on the Executive Committee of the Women Sectorial Group.
Beyond her professional responsibilities, Mrs Osime is committed to mentoring youths and is actively involved in the Autism and Developmental Delays Support Community, reflecting her dedication to inclusion and social impact.
Speaking on her appointment, the chairman of Access Holdings, Mr Aigboje Aig-lmoukhuede, said: “Mrs Osime is a principled and experienced leader with a deep understanding of the Bank’s strategy and values.
“She has demonstrated strong commitment to the Bank’s vision and mission, and I am confident that, under her leadership, the Bank will continue to advance its strategic objectives of delivering sustainable value to shareholders and other stakeholders in the pursuit of its vision to become the world’s most respected African Bank.”
He also congratulated Mr Usoro on the completion of his tenure and for his exemplary leadership, dedication and significant contribution to the Group, saying he remains a valued member of the Access Bank family.
By Adedapo Adesanya
The African Energy Bank (AEB), a pan-African financial institution established to mobilise capital for the continent’s energy development and strengthen regional energy value chains, will begin operations in June 2026.
This came as Nigeria officially handed over the headquarters of bank at a ceremony held on the sidelines of the ongoing Nigeria International Energy Summit (NIES).
The president of the African Petroleum Producers’ Organisation (APPO) and Côte d’Ivoire’s Minister of Mines, Petroleum and Energy, Mr Mamadou Colibaly, praised Nigeria for its leadership in bringing the initiative to fruition, as he disclosed the bank was expected to commence operations in four months’ time.
“We are committed to launching this bank no later than June. I sincerely thank our partners for providing the headquarters and office that make this take-off possible. The African Energy Bank represents Africa’s commitment to finance, develop, and secure its own energy future by Africans, for Africans,” he said.
The African Energy Bank is a joint initiative of APPO member states and the African Export-Import Bank (Afreximbank), established to mobilise domestic and regional capital for Africa’s energy infrastructure, reduce dependence on external financing, and align energy investments with the continent’s long-term development and industrialisation agenda.
While performing the handover, Nigeria’s Minister of State for Petroleum Resources (Oil), Mr Heineken Lokpobiri, said the country had fulfilled all its responsibilities as host nation.
“Nigeria has met every obligation as host. The headquarters is ready, strategically located, and fully equipped, and we are prepared for immediate take-off.”
The ceremony highlighted a growing consensus among African leaders on the need for the continent to take greater ownership of its vast natural resources.
Through tailored financial instruments, the bank is expected to support projects across the energy value chain, including exploration, refining, renewable energy integration, and local content development, with a focus on job creation and economic value addition.
The African Energy Bank has been touted as not just another financial institution, but a strategic pillar in Africa’s quest for economic independence and long-term energy security
The African Energy Bank is a pan-African financial institution jointly promoted by APPO member states and Afreximbank to provide tailored financing solutions for energy projects across the continent, strengthen regional energy markets, and support sustainable development through improved access to capital.
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