Inflation like we are made to understand is single digits, bond yields, TB’S are also going down but as expected lending rates remain high. That’s according to the recently released CBN economic report for the first quarter of 2013. Maximum lending rate at the end of the first quarter of 2013 was 23.8% whilst average deposit rates was 7.2%. So basically, if you deposit money with a bank they pay you on average (could be much lower) 7.2% and then when you borrow from the bank you pay them 23.8%.
Sure, banks must make profit but the problem is with the interest rate spread. 23.8% less 7.2% is a whopping 16.2% interest rate spread.
Source: Central Bank of Nigeria