Banks yet to lower lending rates nearly a week after CBN’s MPR cut
Nigerian banks have yet to reduce lending rates nearly a week after the Central Bank of Nigeria (CBN) cut the Monetary Policy Rate (MPR) by 350 basis points, raising concerns that borrowers may not immediately benefit from the apex bank's latest policy adjustment. The post Banks yet to lower lending rates nearly a week after CBN’s MPR cut appeared first on Nairametrics .
Nearly a week after the Central Bank of Nigeria (CBN) reduced the Monetary Policy Rate (MPR) by 350 basis points, Nigerian banks have not yet lowered their lending rates, causing concern that borrowers may not instantly benefit from the central bank's latest action. On September 22, 2026, CBN Governor Olayemi Cardoso announced the MPR had been cut from 26.5% to 23%, marking the largest decrease in nearly two decades.
The CBN emphasized that this adjustment was not a conventional monetary policy easing but an operational recalibration to restore the MPR as the effective benchmark for market interest rates. Despite expectations, lending rates across the banking sector remain high, ranging from about 20% to 46%, depending on customer risk profiles, funding costs, and individual bank pricing models.
While the benchmark savings deposit rate may decrease from approximately 8.1% to 6.9% annually following the MPR adjustment, several banks remain assessing the decision's implications before altering their loan pricing.
Written by urgent.news from Nairametrics's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
