Nigeria’s average maximum lending rate fell to 33.16 per cent in June 2026 from 34.78 per cent in May, indicating a modest easing in borrowing costs as the Central Bank of Nigeria maintained its benchmark interest rate amid improving macroeconomic conditions.

Data from the CBN’s latest Money Market Indicators showed that the decline followed the Monetary Policy Committee’s decision to retain the Monetary Policy Rate at 26.5 per cent.

The MPC has kept the rate unchanged since February, when it cut the benchmark by 50 basis points.

Despite the month-on-month decline, borrowing costs remained significantly higher than a year earlier.

The average maximum lending rate stood at 29.51 per cent in June 2025, representing a year-on-year increase of 3.65 percentage points.

The maximum lending rate represents the highest interest rate banks charge customers on loans and is widely tracked as an indicator of credit conditions in the economy.

Elevated lending rates typically discourage borrowing, investment and business expansion by making credit more expensive for households and businesses.

The latest decline marks only the second significant easing in lending rates this year.

The average maximum lending rate started the year at 32.68 per cent in January before rising to 35.17 per cent in February, where it remained through April despite the CBN’s decision to cut its policy rate.

The disconnect between monetary policy easing and commercial lending rates highlights the slow transmission of lower policy rates to borrowers, a development analysts say continues to constrain private-sector credit.

At its latest meeting, the MPC unanimously voted to retain all monetary policy parameters, citing exchange-rate stability, moderating inflation and uncertainty in the global economy.

The committee also pointed to geopolitical tensions in the Middle East and concerns about the outlook for the US economy.

CBN Governor Olayemi Cardoso said the committee’s decision was driven by the need to preserve macroeconomic stability while allowing the impact of previous policy measures to continue filtering through the economy.

Businesses, particularly manufacturers and small enterprises, have continued to express concern over elevated borrowing costs as they contend with foreign exchange reforms, higher energy prices and rising operating expenses.

Data from the Manufacturers Association of Nigeria showed that commercial bank credit to the manufacturing sector fell to N6.61tn in December 2025 from N8.53tn a year earlier.