The Central Bank of Nigeria (CBN), under Yemi Cardoso, has increased the monetary policy rate (MPR) by 600 basis points so far, from 18.75% to 24.75% to combat inflation and foster economic stability.
Each bank offers different lending rates that reflect their respective approaches to lending to the manufacturing industry.
The prime rate indicates the best possible rate offered to the most creditworthy customers, while the maximum rate suggests the upper limit of interest rates for loans provided to the sector, which might apply to higher-risk scenarios or different loan structures.
As Nigerian manufacturers navigate a landscape of escalating interest rates, there is a silver lining for those in need of funding.
In a time when interest rates are a critical factor for business sustainability, Nigerian manufacturing firms can find solace in some financial institutions that are offering lower prime lending rates.
Below are the top 10 banks that are standing out by providing the most competitive and lowest rates to the manufacturing sector as of April 12, 2024:
10. Access Bank
Starting off our top 10, Access Bank offers a prime lending rate of 22.00%. Though on the higher side, it remains a competitive player in the industry. Borrowers should be aware of the maximum rate of 28.50%, which is worth considering in their financial planning.
9. Guaranty Trust Bank
Like Access Bank, Guaranty Trust Bank provides a prime rate of 22.00%. The maximum rate at Guaranty Trust Bank is slightly better at 22.50%, making it a viable option for firms looking for more stability in their interest expenses.
8. Globus Bank Ltd
Coming in eighth, Globus Bank Ltd’s prime lending rate stands at 18.33%. Its maximum rate goes up to 29.00%, which manufacturing firms will need to account for when considering their loan options.
7. Citi Bank
Citi Bank features a prime rate of 18.00%, taking the seventh position. However, the maximum lending rate extends to 29.00%. While the starting rate is advantageous, the potential for a higher cap should be kept in mind.
6. Unity Bank
Unity Bank also offers a prime rate of 18.00%, on par with Citi Bank. They are at the sixth spot, with a maximum lending rate of 30.50%, which is on the higher end and should be taken into consideration by manufacturing firms.
5. Greenwich Merchant Bank
Greenwich Merchant Bank is at the fifth position with a prime rate of 18.00%. Its maximum rate of 25.00% offers a less volatile range compared to other banks, which might be suitable for manufacturers looking for moderate terms.
4. Titan Trust Bank
Titan Trust Bank has a prime lending rate of 18.00%, putting it in fourth place. Notably, it offers a stable maximum rate that is the same as its prime, at 18.00%, offering predictability for firms that prioritize consistent lending costs.
3. Nova Merchant Bank
Securing the third spot, Nova Merchant Bank has an appealing prime rate of 12.00%. It also has one of the lower maximum rates at 20.00%, making it an attractive choice for manufacturing firms looking for favorable borrowing terms.
2. FSDH
FSDH is second with a prime rate of 9.00%, tied for the lowest on the list. Manufacturers should be vigilant, though, as the maximum rate at FSDH can soar to 38.00%, the highest maximum on our list.
1. Coronation Bank
At the top, Coronation Bank offers the joint-lowest prime rate of 9.00%. This prime rate is the most competitive for manufacturers, although the maximum rate can reach up to 30.00%, which must be factored into any long-term financial considerations.
