Banks raise lending rates for top borrowers despite CBN cuts
AI Executive Briefing
Verified Synthesis~92s readRaise prime rates in 8 sectors, cut maximum rates *Agric, construction, manufacturing face higher rates *Analysts warn of delayed impact of CBN rate cuts By Babajide Komolafe, Economy Editor Despite interest rate reductions by the Central Bank of Nigeria (CBN), banks have raised average prime lending rates in several key sectors of the economy, defying expectations of cheaper loans for businesses across the country. Average prime lending rates in agriculture, forestry and fishing rose to 24.77 per cent from 23.44 per cent, while construction increased to 26.40 per cent from 25.25 per cent.
Context & Background
- ✦The CBN in September 2025 announced the first reduction in the Monetary Policy Rate (MPR), the financial market interest rate benchmark, to 27 per cent from 27.5 per cent, followed by another 50 basis points (bpts) reduction to 26.5 per cent in February 2026, and a massive 350 bpts cut to 23 per cent in September 2026.
Key Figures & Named Entities
2025:The CBN in September 2025 announced the first reduction in the Monetary Policy Rate (MPR), the financial market interest rate benchmark, to 27 per cent from 27.5 per cent, followed by another 50 basis points (bpts) reduction to 26.5 per cent in February 2026, and a massive 350 bpts cut to 23 per cent in September 2026.2026:The latest reduction in the MPR followed a three consecutive month downward trend in the inflation rate to 15.39 per cent in August 2026 from 15.93 per cent in May 2026.2026:The 450bpts reduction in the MPR in the 13 months to September 2026 had fuelled expectations that banks will reduce lending rates thus providing relief for businesses and households.
Outlook & Next Steps
Follow original publisher reporting for subsequent developments, official responses, and verified updates.
Key Takeaways
Verified Extract- Raise prime rates in 8 sectors, cut maximum rates *Agric, construction, manufacturing face higher rates *Analysts warn of delayed impact of CBN rate cuts By Babajide Komolafe, Economy Editor Despite interest rate reductions by the Central Bank of Nigeria (CBN), banks have raised average prime lending rates in several key sectors of the economy, defying expectations of cheaper loans for businesses across the country.
- Average prime lending rates in agriculture, forestry and fishing rose to 24.77 per cent from 23.44 per cent, while construction increased to 26.40 per cent from 25.25 per cent.
- The CBN in September 2025 announced the first reduction in the Monetary Policy Rate (MPR), the financial market interest rate benchmark, to 27 per cent from 27.5 per cent, followed by another 50 basis points (bpts) reduction to 26.5 per cent in February 2026, and a massive 350 bpts cut to 23 per cent in September 2026.
Key Facts:2025: The CBN in September 2025 announced the first reduction in the Monetary Policy Rate (MPR), the financial market interest rate benchmark, to 27 per cent from 27.5 per cent, followed by another 50 basis points (bpts) reduction to 26.5 per cent in February 2026, and a massive 350 bpts cut to 23 per cent in September 2026.2026: The latest reduction in the MPR followed a three consecutive month downward trend in the inflation rate to 15.39 per cent in August 2026 from 15.93 per cent in May 2026.2026: The 450bpts reduction in the MPR in the 13 months to September 2026 had fuelled expectations that banks will reduce lending rates thus providing relief for businesses and households.2025: However, Financial Vanguard findings from the CBN’s published interest rate schedules for August 2025 and October 2026 show that average prime lending rates — the preferential rates extended to creditworthy corporate borrowers — increased in eight of 11 key economic sectors.
Editorial Excerpt
Despite interest rate reductions by CBN, banks have raised average prime lending rates in several key sectors of the economy
Frequently Asked Questions About This Story
What is the latest development regarding Lagos State?
Raise prime rates in 8 sectors, cut maximum rates *Agric, construction, manufacturing face higher rates *Analysts warn of delayed impact of CBN rate cuts By Babajide Komolafe, Economy Editor Despite interest rate reductions by the Central Bank of Nigeria (CBN), banks have raised average prime lending rates in several key sectors of the economy, defying expectations of cheaper loans for businesses across the country.
Who are the key organizations or public figures mentioned?
The primary parties identified in this coverage include Lagos State, Central Bank of Nigeria.
What timeline or key figures were confirmed?
The CBN in September 2025 announced the first reduction in the Monetary Policy Rate (MPR), the financial market interest rate benchmark, to 27 per cent from 27.5 per cent, followed by another 50 basis points (bpts) reduction to 26.5 per cent in February 2026, and a massive 350 bpts cut to 23 per cent in September 2026.
