Commercial lenders have raised the interest rates they impose on current contracts by 200 basis points, or 2%, up to 30% or more, depending on the bank.
Notices have been delivered to clients with current loans alerting them of an increase in interest rates. Every other rate in the market was adjusted upward almost immediately after the CBN announced the 100 basis point hike in interest rate to 16.5 percent, according to Teslim Shitta-Bey.
He claims that the current rate of interest is north of 22 percent, which means that with inflation at 21. 09 percent, actual lending rates are now positive and suggest that the lender is even in front of the borrower after adjusting for inflation.
November 22, 2022, the Central Bank Nigeria (CBN) raised the interest rate to 16. 5 percent from 15.5 percent sustaining its aggressive stance towards fighting inflation which rose to 21. 09 percent in October.