‘Recapitalisation Pushes Bank Lending Rates To 22–23%’

The recapitalisation of Nigerian banks has pushed commercial lending rates below the Central Bank of Nigeria’s (CBN) Monetary Policy Rate (MPR), with some lenders now offering loans at between 22 and 23 per cent, the managing director/chief executive officer of Coleman Technical Industries Limited, George Onafowokan, has said.
Onafowokan said the increased capital injected into the banking system had boosted liquidity and intensified competition among banks for lending opportunities, forcing actual market lending rates below the previous policy rate of 26.5 per cent.
He described the recent reduction in the MPR as a “reset” designed to align monetary policy with prevailing market real...