National Economy
Thursday, October 2, 2025
  • Home
  • News
    • International Business
  • Lead-In
    • Cover
    • Investigation
  • Economy
    • Nigerian Economy
    • Fiscal Policy
    • Energy
    • Agri Business
    • Transportation
    • Industry
    • Competition
    • Homes & Property
    • Insurance
    • Companies & Markets
      • Companies
      • Capital Market
  • Tech
  • States & Politics
  • Commentary
    • Analyst
    • Business Matters
    • All Angles Considered
    • ClickSend
  • Editorial
  • Data
  • Others
    • Opinion
    • Money Guide
    • Analysis
    • Growth
    • Sport Economy
No Result
View All Result
Read News
National Economy
  • Home
  • News
    • International Business
  • Lead-In
    • Cover
    • Investigation
  • Economy
    • Nigerian Economy
    • Fiscal Policy
    • Energy
    • Agri Business
    • Transportation
    • Industry
    • Competition
    • Homes & Property
    • Insurance
    • Companies & Markets
      • Companies
      • Capital Market
  • Tech
  • States & Politics
  • Commentary
    • Analyst
    • Business Matters
    • All Angles Considered
    • ClickSend
  • Editorial
  • Data
  • Others
    • Opinion
    • Money Guide
    • Analysis
    • Growth
    • Sport Economy
No Result
View All Result
National Economy
No Result
View All Result
Home News

Senate Probes Huge Difference In Deposit, Lending Interest Rates By Banks

by
6 years ago
in News
Reading Time: 2 mins read
Share on FacebookShare on TwitterShare on Telegram

The Senate on Thursday mandated its Committees on Finance, Banking, Insurance, and other Financial Institutions to investigate the rationale behind the huge difference between deposit and lending interest rates among commercial banks and other financial institutions.

The Senate’s resolution is hinged on a motion: “Urgent Need to Reduce the Gap Between Lending Interest Rate and Deposit Interest Rate among Commercial Banks and other Financial Institutions.”

The motion was sponsored by Sen. Solomon Adeola (APC-Lagos).

Adeola in his lead debate noted that there was a huge divergence between the deposit and lending rates in Nigeria.

You May Like

Dangote Group To Redeploy Sacked Refinery Workers After Government Intervention

Tinubu Says Tax-to-GDP Rises To 13.5%, Debt Burden Halved

He said data from Central Bank of Nigeria (CBN)indicates that the savings deposit rate as of December 2019 was 3.89 percent while prime and maximum lending rates were 14.99 percent and 30.72 percent in the same period.

He said that Nigeria’s current lending rate was one of the highest in the world, while the prime lending rate according to CBN’s Nigeria Monetary Policy Rate (MFR) was 14.99 percent.

He said loans were available in the commercial banks and other banks at an interest rate of between 22 and 27 percent.

He said the latest data from the National Bureau of Statistics (NBS) also showed that the inflation rate further rose from 11.98 percent in Dec. 2019 to 12.13 percent in Jan. 2020.

“This development negatively affects the deposits of commercial bank customers in addition to the low-interest rates on deposits.

“The interest rate spread in some other African countries are not as wide as that of Nigeria.

“For instance, in Kenya, the deposit rate, savings rate and lending rate as at Sept.2019 were 6.89 percent,4.58 percent. and 12.47 respectively”.

He said South African’s overnight deposit rate and lending rate as at February 20 were 6.34 percent and 9.75 percent.

He said CBN had not done enough in balancing the deposit and lending rate with the goal of encouraging savings.

He also expressed concern that higher interest rates, interest payments on credit cards and loans were more expensive.

This, Adeola noted discourages people from borrowing and spending while those who already had loans would have less disposable income because they spend more on interest payments.

This, he further noted usually affects production in the real sectors of the economy.

Contributing to the motion, Sen. Barau Jibril (APC-Kano) said the difference in deposit and lending rates was designed to short change Nigerians.

He said the difference in the rates would discourage investors into the country.

He said there was a need for the Senate to investigate the matter by inviting the CBN to explain the reasons for the huge difference.

Other senators who spoke in support of the motion included, Sen.Sabo Mohammed, (APC-Jigawa), Bala Na’Ala(APC-Kebbi), Uche Ekwunife (PDP-Anambra) among others.

The senators condemned the huge difference in the deposit and lending rates noting that the development was designed to rip-off Nigerians and stall the growth of businesses in the country.

ShareTweetShare
Previous Post

NDIC WINS N1.4BN DEBT RECOVERY CASE AGAINST DEBTOR OF DEFUNCT GULF BANK

Next Post

Breaking: First Case Of Coronavirus Confirmed In Lagos

ANOTHER GOOD READ

Dangote Hails Tinubu Over NNPCL Leadership Choice
Business

Dangote Group To Redeploy Sacked Refinery Workers After Government Intervention

10 hours ago
News

Tinubu Says Tax-to-GDP Rises To 13.5%, Debt Burden Halved

10 hours ago
Tougher Choices Ahead For Nigeria’s Economic Rebound In H2
News

Tinubu: 153,000 Nigerians Access ₦30bn Loans Through Credicorp

10 hours ago
AfDB, Partners Raise $2.2bn For Agro Zones Expansion
News

AfDB, Private Sector Leaders Forge Stronger Alliance For Africa’s Growth

22 hours ago
AfDB, Partners Raise $2.2bn For Agro Zones Expansion
News

Africa Must Turn Trade Disruptions Into Growth Opportunities – AfDB President

22 hours ago
Ogun MAN Urges Manufacturers To Explore Alternative Funding
News

MAN Condemns Labour Unions Over Dangote Refinery Dispute

23 hours ago
Next Post

Breaking: First Case Of Coronavirus Confirmed In Lagos

Most Recent

Dangote Hails Tinubu Over NNPCL Leadership Choice

Dangote Group To Redeploy Sacked Refinery Workers After Government Intervention

October 1, 2025
Peter Obi Calls For Reopening Of Onitsha Markets Closed Over Illicit Drugs

Obi Slams Lagos Trade Fair Demolitions, Alleges Lack of Due Process

October 1, 2025

Tinubu Says Tax-to-GDP Rises To 13.5%, Debt Burden Halved

October 1, 2025
Tougher Choices Ahead For Nigeria’s Economic Rebound In H2

Tinubu: 153,000 Nigerians Access ₦30bn Loans Through Credicorp

October 1, 2025
Nigeria Immigration Launches 24-hour Real-time Border Surveillance

Immigration Service Begins Nationwide Clampdown On Foreigners With Expired Visas

October 1, 2025
Nig@65: NDPC Act Boosts Nation’s Economic, Global Image – Expert

Nigeria at 65: Completing the Work of Freedom

October 1, 2025
NASRDA Pushes Space Education

NASRDA Pushes Space Education

October 1, 2025

Nigeria’s London Mission Staff Trained On Data Privacy Compliance

October 1, 2025
Advertise with us

© 2024 | National Economy

No Result
View All Result
  • Home
  • News
    • International Business
  • Lead-In
    • Cover
    • Investigation
  • Economy
    • Nigerian Economy
    • Fiscal Policy
    • Energy
    • Agri Business
    • Transportation
    • Industry
    • Competition
    • Homes & Property
    • Insurance
    • Companies & Markets
      • Companies
      • Capital Market
  • Tech
  • States & Politics
  • Commentary
    • Analyst
    • Business Matters
    • All Angles Considered
    • ClickSend
  • Editorial
  • Data
  • Others
    • Opinion
    • Money Guide
    • Analysis
    • Growth
    • Sport Economy

© 2024 | National Economy