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 Adedapo Adesanya
The Central Bank of Nigeria (CBN) has unveiled the fourth edition of its Foreign Exchange Manual as part of efforts to deepen liquidity, improve transparency and strengthen confidence in the country’s foreign exchange market.
Speaking at the launch of the revised manual in Abuja on Friday, the Governor of the apex bank, Mr Yemi Cardoso, said the document will take effect from June 1, 2026.
He said it was developed after extensive consultations with banks, exporters, importers, corporates, regulators and development partners.
He said the new framework reflects the apex bank’s commitment to modernising the country’s foreign exchange administration in line with international best practices.
Mr Cardoso described the foreign exchange market as a critical pillar of any open economy, noting that effective governance of the sector is essential for sustaining macroeconomic stability and investor confidence.
“Foreign exchange is more than a financial instrument. It anchors price stability, facilitates the flow of goods and capital, and shapes investor sentiment,” he said.
The CBN governor stressed that the revised manual became necessary due to changing global economic realities, domestic reforms and the need for a more coherent and forward-looking regulatory framework.
According to him, the last edition of the FX manual was issued in 2018, making the latest review both timely and necessary.
Mr Cardoso disclosed that Nigeria’s foreign exchange market has witnessed significant improvement in liquidity since the current administration began reforms in the sector.
He added that daily turnover in the FX market increased from an average of about $100 million in the early days of the administration to between $400 million and $600 million daily.
The CBN Governor added that the market had also recorded transactions of up to $1 billion per day on several occasions in recent months.
“We have gone from a situation where it was more or less a one-way market, where the central bank came in, intervened and went away, to a much more dynamic market,” he stated.
The apex bank boss noted that the reforms were gradually restoring confidence among investors and market participants, encouraging freer entry and exit in the market without unnecessary restrictions.
He also maintained that the nation’s foreign reserves should not be used as the primary tool for funding the foreign exchange market.
“Reserves are reserves. They are not what you look to fund a market,” he said.
The CBN Governor assured stakeholders that the revised manual would be distributed free of charge to authorised dealers while the bank strengthens monitoring mechanisms to ensure compliance, fairness and accountability across the foreign exchange market.
On his part, the Deputy Governor for Economic Policy, Mr Muhammad Abdullahi, said the review formed part of broader reforms initiated by Mr Cardoso to restore confidence, improve transparency and deepen liquidity in the foreign exchange market.
Mr Abdullahi explained that the revised manual introduces several changes aimed at improving ease of doing business and reducing transaction bottlenecks.
Among the notable changes, he noted, are provisions allowing unfettered access to export proceeds, the introduction of non-resident investment accounts and operational guidelines for Pan-African Payment and Settlement System (PAPSS) transactions to support regional trade.
Mr Abdullahi added that the manual also contains new provisions on service exports, revised documentation requirements and updated operational procedures designed to align Nigeria’s FX market with global standards.
He said the apex bank deliberately adopted an ease of doing business approach during the review process to eliminate inefficiencies and ambiguities identified by stakeholders.
“The revised manual is not a stand-alone exercise but part of a broader institutional reform effort designed to strengthen the integrity, credibility and effectiveness of Nigeria’s foreign exchange system,” he said.
By Aduragbemi Omiyale
The Central Bank of Nigeria (CBN) has approved the appointment of Mr Julius Omodayo-Owotuga to the board of First Bank of Nigeria Limited as an executive director.
A statement from the company said the appointment of Mr Omodayo-Owotuga became effective on Wednesday, May 13, 2026.
He was appointed to the board of the subsidiary of First Holdco Plc to further strengthen its leadership capacity across strategic finance, governance, risk management, and institutional transformation.
Before now, he served on the board of First Holdco as a non-executive director between 2021 and 2026.
The appointee brings to the board 24 years of experience spanning banking and financial services, infrastructure finance, power, oil & gas, and audit and consulting.
His appointment, according to the notice to the Nigerian Exchange (NGX) Limited, reflects the Bank’s continued commitment to strong governance, disciplined execution, financial resilience, and sustainable long-term growth.
He most recently served as deputy chief executive of Geregu Power Plc, Nigeria’s first listed power generation company, where he played a pivotal role in institutional transformation, governance strengthening, capital market positioning, operational optimisation, and major financing initiatives, including the company’s landmark listing on NGX.
Mr Omodayo-Owotuga previously served as group executive director, Finance & Risk Management at Forte Oil Plc (now Ardova Plc), where he was instrumental in the company’s financial and operational transformation, leading strategic restructuring, capital raising, treasury optimisation, enterprise risk management, and governance improvement initiatives that strengthened long-term shareholder value.
His professional career also includes roles at Africa Finance Corporation, Standard Chartered Bank, KPMG Professional Services and MBC International Bank (Now First Bank Nigeria Limited), providing him with deep experience in institutional finance, treasury management, financial controls, regulatory engagement, and corporate advisory.
Mr Omodayo-Owotuga is a CFA Charter Holder, KPMG-trained Accountant, and a Fellow of the Institute of Chartered Accountants of Nigeria (ICAN), the Chartered Institute of Taxation of Nigeria (CITN), and the Institute of Credit Administration. He is also a member of the Institute of Directors (IoD) Nigeria and a Certified Management Accountant.
He holds a Doctorate in Business Administration, a Master’s in Business Administration and a Bachelor’s degree in Accounting. He is an alumnus of Saïd Business School, University of Oxford, IE Business School, Geneva Business School, and the University of Lagos.
By Modupe Gbadeyanka
In recognition of its strategic leadership in advancing the growth and resilience of small and medium-sized enterprises (SMEs), Union Bank of Nigeria Plc has been honoured by the Association of Small Business Owners of Nigeria (ASBON).
The lender was rewarded by the group for its suite of solutions designed to enable business expansion and long-term value creation.
At the Nigeria National SME Business Awards, held recently in Lagos, Union Bank was given the Best SME Growth Banking Initiatives Award for 2025.
The ceremony was organised by ASBON in partnership with the Lagos State government through the Ministry of Commerce, Cooperatives, Trade and Investment.
The event convened stakeholders from the public and private sectors to recognise individuals and organisations driving meaningful impact across Nigeria’s SME ecosystem.
Receiving the award on behalf of the bank, its Head of SME Segment, Mr Ayokunnumi Abraham, described the recognition as a strong endorsement of the organisation’s commitment to supporting small and medium-sized businesses.
“We are honoured to receive this recognition, which reflects Union Bank’s continued commitment to helping SMEs grow by making banking simpler, faster, and more accessible.
“Through enhancements to our specialised platforms such as Union360, we have meaningfully reduced the time it takes for businesses to come on board and begin transacting.
“These improvements have shortened onboarding, increased digital adoption among our SME customers, and supported the acquisition of new business clients. Our focus remains on delivering practical solutions that help Nigerian businesses thrive,” he stated.
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