Banking lending rates decline in Nepal and Nigeria

Banking and financial institutions in Nepal and Nigeria are reporting declines in average lending interest rates.

In Nepal, records from the Nepal Rastra Bank show that average interest rates have reached historic lows. Lending to the deprived sector is as low as 5.53 percent, while loans against shares average 6.36 percent. Real estate loans stand at 6.65 percent, residential loans up to Rs 20 million at 6.92 percent, and auto loans at 6.99 percent. This decline is attributed to excess liquidity in the banking system and a slump in loan demand.

In Nigeria, the banking sector's average maximum lending rate dropped to 29.19 percent in August 2026, down from 33.16 percent in July. This decrease follows a reduction in the Monetary Policy Rate to 26.50 percent. While the average rate has fallen, some institutions like Stanbic IBTC and Ecobank maintained higher general maximum lending rates. The International Monetary Fund previously noted a “rockets-and-feathers” pattern in Nigeria, where borrowing rates rise quickly during tightening cycles but decline gradually when policy is eased.