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 report is titled: ‘Deposit and Lending Rates in the Banking Industry’.
The apex bank stated that making the rates public was in furtherance of its transparency and full disclosure stance and that it also aligned with its Monetary Policy Committee’s (MPC’s) decision that the lending rates obtainable in Deposit Money Banks (DMBs) be made public to guide business decisions.
An analysis of the report based on applicable rates for banks as at May 18 indicated that while some banks lend cheaply to prime borrowers, their maximum lending rate to other categories of borrowers was as high as 49.50 per cent per annum for the agricultural sector.
The report shows that Union Bank provides credits 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.
According to the report, the 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.
It lends to Mining and Quarrying at 17.50 per cent, prime, and 33 per cent maximum compared to Power and Energy’s rates of 22 per cent, prime, and 22 per cent, maximum, and Oil and Gas at 7.50 per cent, prime, and 26 per cent maximum.
The report reflects 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 interest rate of 7.13 per cent to time depositors.
Manufacturers borrow from GTBank at 12 per cent, prime, 25 per cent maximum. The bank lends to Real Estate at 19 per cent, prime, 23 per cent maximum, while Finance and Insurance sector borrows from the lender at 21 per cent prime, 25 per cent, maximum. Government borrows at 18 per cent, prime, 18 per cent, maximum rates.
The apex bank report also shows that 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 gave out credit at nine per cent to government, prime rate, and 31 per cent maximum rate to the market segment. Similarly, 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.
The report indicates that First Bank’s average interest rate on demand deposit is zero per cent; 4.20 per cent average interest rate for savings deposit and 7.50 per cent for time deposit.
The bank lends to Agriculture at nine per cent, prime, 27 per cent maximum; Manufacturing borrows at 20 per cent, prime, and 28 per cent maximum, while Real Estate borrows at 20 per cent, prime, and 27 per cent maximum. Finance and insurance borrow at 20 per cent prime, and 27 per cent maximum, while education borrows at 19 per cent prime, and 27 per cent maximum.
Power sector borrows at 19 per cent prime, 27 per cent maximum while Capital Market borrows from the bank at nine per cent prime, and 27 per cent maximum; and Oil and Gas borrows at 20 per cent prime, and 28 per cent maximum.
United Bank for Africa (UBA PLc) has its average interest rate on deposit at 0.28 per cent; and pays 4.20 per cent on savings deposit, and 10.86 per cent for time deposit. The bank lends to Agriculture at seven per cent, prime, and 25 per cent, maximum; Manufacturing, 19 per cent, prime and 29 per cent maximum.
Access Bank’s average interest rate on demand deposit is 0.05 per cent; savings deposit is 4.20 per cent while time deposit is 11.84 per cent. The bank’s prime lending rate for Agriculture, Forestry, and Fishing is 19 per cent; while maximum lending rate for the sector is 30.50 per cent.
The bank’s prime lending rate to Manufacturing is 14 per cent; while 30.5 per cent is its maximum lending rate. The lender lends to government at 16 per cent, prime, and 26.50 per cent maximum rate.
It provides credit to Education sector at 19 per cent; and 30.50 per cent is the maximum rate. Power and Energy, Oil and Gas sectors get credit at 15 per cent form the bank, prime while its maximum rate is 30.50 per cent.
Guaranty Trust Bank’s average interest rate on demand deposit is 2.90 per cent; savings deposit at 4.20 per cent and time deposit at 7.713 per cent. The bank lends to Agriculture at seven per cent, prime, 21 per cent maximum rate.
