By Lanre Shodimu
The Agriculture and manufacturing sector is facing about 60% hike in interest rate according to data made available by the Central Bank of Nigeria.
The data revealed sharp increases in maximum lending rates across key segments of the economy.
The data revealed sharp increases in maximum lending rates across key segments of the economy.
of the figures however indicated that Stanbic IBTC recorded the highest lending rate in the industry at 60 percent, applicable across multiple sectors, including agriculture, forestry and fishing, manufacturing, professional services, information and communication, finance and insurance, and mining and quarrying.
This development underscores mounting credit pressures on productive sectors already grappling with high energy costs, foreign exchange volatility and weak consumer demand.
Further more, analysis showed that Ecobank Nigeria posted a maximum lending rate of 48 percent in administrative and support services, while Polaris Bank recorded 47.31 percent in the manufacturing sector.
Also, FCMB applied rates as high as 46.10 percent across several sectors, including agriculture and manufacturing.
The spike in lending ceilings comes as there exists a relative stability in deposit rates. Savings deposit rates across most Deposit Money Banks averaged 8.10 percent during the review period. First Bank of Nigeria offered the highest savings deposit rate at 8.25 percent, while Globus Bank followed with 8.18 percent.
Demand deposit rates posted marginal increases at some banks. For instance, Access Bank raised its average demand deposit rate slightly, while Zenith Bank recorded a modest uptick within the period.
On the prime lending side, the trend was mixed. Zenith Bank reduced its prime lending rate from 25.00 percent to 24.23 percent, while Access Bank maintained its prime rate at 25.50 percent throughout the period.
However, several institutions adjusted their maximum lending rates upward. Nova Bank increased its general maximum lending rate from 31.38 percent to 33.56 percent, while FSDH Merchant Bank raised its ceiling from 28.00 percent to 30.00 percent.
