Nearly a week after the Central Bank of Nigeria lowered the lending rate from 26.5% to 23%, Nigerian commercial banks have yet to reduce lending rates.
Lending rates across the banking sector remain elevated, ranging from about 20% to as high as 46%, depending on customer risk profiles and individual bank pricing models.
Bank sources who spoke to Naira metrics, only savings deposit rates tied to the MPR may decline, while lending rate decisions await review by asset-liability committees.
CPPE CEO Dr Muda Yusuf said the effectiveness of the rate cut depends on how quickly banks transmit the change to borrowers.
The 350-basis-point cut represents the largest reduction in the benchmark rate since December 2006, when the CBN slashed the MPR by 400 basis points.