Nigerian banks have increased prime lending rates in eight key sectors of the economy despite successive reductions in the Central Bank of Nigeria’s Monetary Policy Rate.

Data published by the CBN show that average prime lending rates rose in agriculture, construction, manufacturing, real estate, education, government, healthcare, and finance and insurance between August 2025 and October 2026.

The increases ranged from 0.33 percentage points in finance and insurance to 1.33 percentage points in agriculture, forestry and fishing.

However, lending rates declined slightly in the arts, entertainment, oil and gas, and information and communication sectors.

The development comes despite the CBN’s reduction of the benchmark interest rate from 27.5 per cent to 23 per cent within the period, following a gradual decline in inflation.

Financial analysts, including Tunde Abioye of Quest Merchant Bank and Nnamdi Nwizu of Comercio Partners, say the impact of monetary easing is yet to be fully reflected in bank lending rates.

They warn that persistently high borrowing costs could discourage investment, weaken business expansion and affect employment creation, particularly in agriculture, manufacturing and real estate.