By Melvin Onwubuke
Following the Central Bank of Nigeria’s record increase in monetary policy rate, Nigerian banks began to raise their lending rates, and businesses and individuals, who have already got credit facilities with them are going to be paying more for these loans.
Zenith Bank, the country’s largest bank by market capitalization, raised its interest rate by 500 basis points to 30 per cent from 25 per cent. The review takes effect from March 12, 2024, according to BusinessDay.
In a notice to its customers, Zenith Bank said, “Accordingly, we are constrained to review the interest rate applicable on your credit facility effective March 12, 2024.”
“We crave your understanding as we continue to monitor the Market and update you accordingly,” the bank said.
GT Bank has also raised its lending rate by 500 basis points in response to the MPR hike.
Meanwhile, Stanbic IBTC has increased the interest rate on its loans by 300 basis points.
Analysts say more banks are expected to follow suit in the coming days.
Recall, In order to improve liquidity in the economy and stabilize the naira dollar exchange rate, the Central Bank of Nigeria raised the MRP by 400 basis points to 22.75 from 18.75 per cent at its latest Monetary Policy Committee meeting.
