60% Interest Rates Threaten Survival of Nigeria's Manufacturing and Agriculture Sectors
Nigerian manufacturers and agricultural operators are grappling with crippling interest rates of up to 60 per cent on loans, according to the latest data on deposit and lending rates released by financial authorities. This alarming development comes against the backdrop of the Central Bank of Nigeria's (CBN) sustained tight monetary policy, with the Monetary Policy Rate (MPR) held at 27 per cent as of late 2025 into early 2026. While the benchmark rate aims to curb inflation and stabilize the naira, commercial banks have passed on—and in some cases amplified—these costs, pushing effective lending rates far higher for risk-perceived sectors like manufacturing and agriculture. Industry stakeholders report that formal bank loans to these sectors often carry rates in the 30-40% range, but when factoring in additional fees, collateral requirements, or informal lending (common in rural agric), the real cost can climb to 60% or more. This has led to reduced borrowing, slashed investment...