CBN unveils new deposit, lending rates

The Central Bank of Nigeria (CBN) has published a new report on the deposit and lending rates available in commercial and merchant banks in Nigeria.
The CBN report titled: ‘Deposit and Lending Rates in the Banking Industry’ the apex bank said the disclosure is 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 per cent per annum for the agricultural sector.
The report showed that Union Bank Plc lends to public utilities sector at 17.50 per cent, prime rate, and 24.50 per cent maximum rate. The bank lends for general purpose at 17.50 per cent, prime, and 52.50 per cent maximum.
Average rate for demand deposit at Union Bank is 0.50 per cent; 4.20 per cent for savings and 12.48 per cent for demand deposit. The bank however, lends to agriculture at 23.50 per cent, prime, and has 49.50 per cent as its maximum lending rate for the sector. Mining and quarrying borrow at 17.50 per cent, prime, and 33 per cent maximum. Power and Energy borrow at 22 per cent, prime, and 22 per cent, maximum, while oil and gas borrow at 7.50 per cent, prime, and 26 per cent 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.