Latest Headlines
MPR: Five Banks Generated N2.6trn from Loans,Advances to Customer in 2024

Kayode Tokede
Amid a steep rise in the Monetary Policy Rate (MPR) to 27.50 per cent, five Nigerian banks generated N2.6 trillion in interest income from loans and advances to their customers, analysis of their unaudited financial reports for the year ended December 31, 2024 has revealed.
This is about 91.5 per cent increase from N1.36 trillion generated by these five banks in the 2023 financial year.
The banks are: FCMB Group Plc, Wema Bank Plc, Stanbic IBTC Holdings Plc, FBN Holdings and Sterling Financial Holdings Company Plc. The five banks recently released unaudited result and accounts to the investing public as demanded by the Nigerian Exchange Limited (NGX).
The likes of Access Holdings Plc Zenith Bank Plc, United Bank for Africa Plc (UBA), Ecobank and Guaranty Trust Holding Company Plc (GTCO) are expected to release audited result and accounts once the CBN grants approval on or before March 2025.
The breakdown showed that FBN Holdings raked N1.36 trillion from loans to customer in 2024, about 124 per cent increase from N609.82 billion reported in 2023.
FCMB Group disclosed N433.09 billion interest income from loans to customer in 2024, about 59 per cent increase from N272.9 billion in 2023, while Stanbic IBTC Holdings announced N391.62 billion interest income from loans to customer in 2024, representing an increase of 71 per cent from N229.6billion in 2023.
In addition, Wema Bank posted N230.98 billion interest income from loans to customer in 2024, a growth of 89 per cent from N122.18 billion as Sterling Financial Holdings Company reported N177.61 billion interest income from loans to customer in 2024, up by 45 per cent from N122.3 billion declared in 2023.
From the 2024 unaudited result and accounts, the five banks generated a sum of N4.22 trillion from interest on loans & advances to banks, and customers, government securities, an increase of 122 per cent from N1.9 trillion declared in 2023.
As the MPC of the Central Bank of Nigeria’s (CBN) voted to hike interest rate to 27.50 per cent in 2024, average maximum lending rate rose to 29.71per cent in December 2024 from 26.62 per cent December 2023, reflecting the impact of tighter monetary policies aimed at controlling inflation and stabilizing the naira.
Maximum rate is the upper limit of interest rates for loans provided to the sector, which might apply to higher-risk scenarios or different loan structures.
Also, the average prime lending rate to bank customers in Nigeria closed 2024 at 18.56 per cent, the highest point since 2010 as MPR last year gained momentum.
CBN revealed that the average prime lending rate that opened 2024 at 13.82 per cent, gained 474basis points to close 2024 at 18.56 per cent amid increase in MPR from 18.75 per cent to 27.50 per cent.
The rate highest peak was 18.74per cent February 2010 when MPR was at six per cent.
The prime lending rate is the interest rate that banks charge their most creditworthy customers, usually large corporations and it serves as a benchmark for many other loans, including personal and business loans.
As gathered by THSIDAY, the Nigeria’s average prime lending rate reached an all-time high of 19.66 per cent in November 2009 and a record low of 11.13per cent in March 2021.
The steady increase in MPR reflected in the average prime lending rate last year as the CBN intensifies its effort to tackle inflation rate and stable the local currency at the foreign exchange market.
The first hike in MPR was rate from 18.75 per cent to 22.75 per cent, the second to 24.75 per cent, the third to 26.25 per cent, the fourth to 26.75 per cent and recently 27.25 per cent in the September 2024 MPC meeting.
MPR, thus, moved to 27.50 per cent November 2024 with the average prime lending rate jumping to 18.39 per cent in November 2024 to eventually closing last year at 18.56per cent.
These increases, totalling 875 basis points in MPR since Mr. Olayemi Cardoso’s appointment, have been driven by efforts to tackle the country’s persistent inflation challenges, which include high core and food inflation.
An investigation by THISDAY showed that the increase in MPR impacted on banks average prime lending to their customers in 2024.
However, the steep increase in the policy rate has sparked concerns regarding the potential impact on the cost of credit for businesses already facing economic hardships.
Fitch Ratings had projected that the CBN would maintain a stand on continued tightening policy in the near term, which seems necessary to more fully control inflation as rapid credit and money-supply growth suggests a still-loose monetary context.
“Such a tightening will still face implementation challenges, partly due to the potential for countervailing political pressure. However, without further sizeable monetary tightening, it may be difficult to achieve macroeconomic stability – real interest rates remain negative, deterring inward portfolio investment,” Fitch Ratings added.
Speaking with THISDAY, Investment Banker & Stockbroker, Mr. Tajudeen Olayinka said the growth in interest income generated by banks on loans to customers is a reflection of a hike in MPR by CBN.
He expressed that banks review their lending rates on a regular basis, subject to their respective cost of funds and the direction of MPR, not necessarily using MPR as a distinct value.
According to him, the MPR signals to them the direction of interest rate in the market and the price they will pay if they have to borrow from or lend to CBN.
“Therefore, their deposit mix, which includes idle customers’ deposits, determines what their weighted average cost of funds would be. They then factor in the signal from MPR, to enable them to arrive at their various prime lending rates which are usually reserved for their prime customers,” he added.
The Chief Research Officer, InvestData Consulting Limited, Mr. Omordion Ambrose said, “Businesses need a lot of credit facilities to survive, but in an environment where the lending rate is astronomical, many enterprises, especially small and medium-scale, might find it extremely difficult to survive as their products will remain uncompetitive and the cost of production and the sale prices to consumers will remain high.”