Nigeria’s maximum lending rate remained unchanged at 35.17 percent in April 2026, marking the second consecutive month the rate has held steady despite ongoing inflationary and monetary pressures within the economy.
Latest figures from the Central Bank of Nigeria (CBN) indicate that commercial banks maintained the average maximum lending rate offered to customers, reflecting cautious credit conditions across the financial sector.
The maximum lending rate represents the highest interest rate charged by banks on loans to customers considered riskier borrowers.
Analysts say the sustained high lending environment continues to pose major challenges for businesses, especially small and medium-scale enterprises struggling with rising operational costs, weak consumer demand, and elevated borrowing expenses.
The development comes as Nigeria’s inflation rate climbed again in April, rising to 15.69 percent amid persistent increases in food, transportation, and energy costs.
Economic experts note that although the CBN has maintained tight monetary conditions to combat inflation and stabilise the naira, high lending rates continue to constrain private sector growth and access to affordable credit.
Businesses across manufacturing, agriculture, trade, and technology sectors have repeatedly expressed concerns over the rising cost of borrowing, warning that expensive credit limits expansion, investment, and job creation.
Financial sector analysts say banks are maintaining cautious lending behaviour due to inflation risks, foreign exchange volatility, elevated default concerns, and broader macroeconomic uncertainties.
The stable lending rate also reflects the broader monetary policy stance of the CBN under the leadership of Olayemi Cardoso, which has prioritised inflation control, FX market reforms, and monetary tightening to restore macroeconomic stability.
Despite the pressure on borrowers, some analysts argue that maintaining tighter lending conditions may help moderate inflationary pressures and improve financial system stability over the medium term.
However, private sector operators continue to advocate for policies capable of lowering financing costs and improving access to long-term productive credit, particularly for SMEs and critical sectors of the economy.
The sustained high-interest-rate environment comes at a delicate period for Nigeria’s economy as policymakers attempt to balance inflation management with economic growth and investment stimulation.
