₦airaland Forum

Why does Nigeria’s interest rate soar at 27.5% while Morocco barely nudges 2.25%? What drives such stark differences across African economies, policy choices, inflation, or external pressures? How do these rates shape everyday life, from loans and mortgages to business growth and investment? As central banks across the continent adjust their monetary levers, understanding the story behind the numbers is more urgent than ever.

INTEREST RATE — JULY 2025

🇲🇦Morocco — 2.25%
🇿🇦South Africa — 7.0%
🇹🇳Tunisia — 7.5%
🇰🇪Kenya — 9.75%
🇪🇬Egypt — 24.0%
🇬🇭Ghana — 25.0%
🇳🇬Nigeria — 27.5%

#Statisense

https://x.com/StatiSense/status/1960026601959166069

Lol.... I sorry for Naija!

when you manipulate statistics for propaganda purposes , this is what you get.

They manipulated and reduced the inflation rate from 33 percent to 21 percent but refused to reduce the interest rate from 27 percent to 21 percent.

Now if you want to borrow loans from bank, they charge you an astonishing 2.95% monthly 35.4% yearly 😲

Must Nigeria always be among the Last/Least/ Worst?

Good topic.

Something widely overlooked and reason why many African nations are struggling

Nations need to bring down inflation and interest rates and also encourage banks to invest in the real economy. This ultimately boils down to sensible government spending and money printing.

We like telling oiselves that this rate increases FDI. But the fact is that is detrimental in the long-term as foreign portfolio investors come in and leave early with their profit before currency devaluation kicks in which only the masses suffer. If it was all about interest rates, everyone would be flocking to purchase Argentinian government debt

Kai, why won't businesses thrive in Morocco, South Africa, Tunisia and Kenya?


See Nigeria's interest rate, only those into illegal business can borrow from Nigerian banks and be able to pay back



Peter Obi have been telling them to crash the interest rate to encourage more young people to go into production and manufacturing but they keep talking thrash about inflation, people that know nothing about business and economy running Nigeria aground with their cocoa farm and tax master economy style


All they know is to tax people to death to increase IGR for bragging while the economy bleeds

Very sad!
There was a country.
I pray we can come out of this mess

So, it is better to get a loan from a bank in Morocco, then come to fix it in a Nigerian bank and make good returns enough to pay back the bank in Morocco without lifting a finger nor sweat!

That is how the wealthy shuttles funds to make gains

Wisdom no go kee me

DrMB:
Why does Nigeria’s interest rate soar at 27.5% while Morocco barely nudges 2.25%? What drives such stark differences across African economies, policy choices, inflation, or external pressures? How do these rates shape everyday life, from loans and mortgages to business growth and investment? As central banks across the continent adjust their monetary levers, understanding the story behind the numbers is more urgent than ever.


https://x.com/StatiSense/status/1960026601959166069

Reasons:
1. Poor Overall economic management
2. Corruption - causes too much money in the system not being productive, necessitating high interest rates
3. Huge deficits, means too much money in the system, for which the solution is high interest rates
4. Ways and means - printing money always causes too much money and inflation, for which the solution is high interest rates
5. Non diversification of the economy - relaince on crude for forex and falling production and prices meant forex shortages and to attract FPI, we needed high rates
6. High interest rates in America meant we needed to raise ours to compete for forex inflows via FPI

DrMB:
Why does Nigeria’s interest rate soar at 27.5% while Morocco barely nudges 2.25%? What drives such stark differences across African economies, policy choices, inflation, or external pressures? How do these rates shape everyday life, from loans and mortgages to business growth and investment? As central banks across the continent adjust their monetary levers, understanding the story behind the numbers is more urgent than ever.

https://x.com/StatiSense/status/1960026601959166069

The incompetence and corruption of A-looter Propaganda Conmen, APC has destroyed everything that PDP deregulation and privatisation capitalists handed over to them in 2015!

In what area have we seen the positive change that the IntegriThief people promised

thisweekng:
The Minister of Finance and Coordinating Minister of the Economy Chief Olawale Edun has said the last time Nigeria’s economy looked stable was about a decade ago.

He made this statement during his maiden press conference as Minister of Finance where he outlined President Bola Tinubu’s vision, agenda and strategy for the economy.

He said, “I think as we all know, we are not where we should be. The economy is barely growing above the rate of population growth.

“But it was not always so, and I think in trying to look at the way forward, if we now have a situation of slow growth, double-digit inflation, weak/depreciating exchange rate, as well as security concerns that are resulting in an economy that is not growing and not taking Nigerians out of poverty.

“If we think back to the last time when the economy was stable- when it was growing, when inflation was low, and the interest rate was affordable, that period was about a decade ago. Growth was about 6% in 2013 and 2014.”
Private sector to drive the economy

https://nairametrics.com/2023/09/01/the-last-time-nigerias-economy-was-stable-was-about-a-decade-ago-wale-edun/

Fiinally, what many people do not know is inflation rate and interest rate goes hand in hand,cause even many banks would perhaps love to drop their interest rate but not in a place where we have inflation rate so high. Interest rate in the real sense must be slightly higher than inflation rate.

dawnomike:
So, it is better to get a loan from a bank in Morocco, then come to fix it in a Nigerian bank and make good returns enough to pay back the bank in Morocco without lifting a finger nor sweat!

That is how the wealthy shuttles funds to make gains

Wisdom no go kee me

How stable is the Naira exchange rate compared to the Moroccan currency

Omo, at least I saw this comment. The number of ignorant people here based on the comments here beats my imagination.

Tmex:
Fiinally, what many people do not know is inflation rate and interest rate goes hand in hand cause even many banks would perhaps love to drop their interest rate in a place where we have inflation rate so high. Interest rate in the real sense must be slightly higher than inflation rate.

dawnomike:
So, it is better to get a loan from a bank in Morocco, then come to fix it in a Nigerian bank and make good returns enough to pay back the bank in Morocco without lifting a finger nor sweat!

That is how the wealthy shuttles funds to make gains

Wisdom no go kee me

Exchange rate go wound you.

We tried it with USD/NGN...

We saw shege!

dawnomike:
So, it is better to get a loan from a bank in Morocco, then come to fix it in a Nigerian bank and make good returns enough to pay back the bank in Morocco without lifting a finger nor sweat!

That is how the wealthy shuttles funds to make gains

Wisdom no go kee me

wisdom indeed! Have you considered the differentials In currency valuations?

Why do Nigerians always insult their leaders, from the above data, Egypt Interest rate is as high as that of Nigeria. Egypt will be commended but Nigeria will be insulted.
Egypt and Nigeria are undergoing economic reform's, especially in the area of mopping up excess liquidity from circulation, in the case of Nigeria the interest rate encourage deposit and less of cash in hand leading to currency mop up and strengthening the currency which in turn drops the inflation rate.
Also, high interest rate is targeted towards Foreign Portfolio Investment, attracting dollars into Nigeria, thereby increasing our dollar liquidity. These and some other targeted policy influence interest rate increase

Tmex:
Fiinally, what many people do not know is inflation rate and interest rate goes hand in hand cause even many banks would perhaps love to drop their interest rate in a place where we have inflation rate so high. Interest rate in the real sense must be slightly higher than inflation rate.

Hmmmmm... I have learned something today.

Oga Seun this your character you need to investigate am

Brendaniel:
You can see that for a business man in Nigeria who needs loan, Nigeria is currently the worst in Africa to get a loan, thanks to the lunatic some people made sure they enthroned because of tribal, political and religious supremacy...

Before the so-called lunatic in ya comment. Was it any different?

THE BELOW STATISTICS IS VERY INCORRECT, THE CORRENT LENDING RATE FOR AN AVERAGE COMMERCIAL BANK IN THE COUNTRY AS AT TODAY, 27TH AUGUST, 2025. IS 35%.

SOME COMMERCIAL BANKS EVEN CHARGES ABOVE THAT RATE, THIS ALSO EXCLUDE, INSURANCE RATE OF 2%, MANAGEMENT CHARGES 1%, PROCESSING CHARGES 1% PER ANY AMOUNT THE BANK LEND YOU, VAT MIGHT ALSO BE THERE.

WHY DO YOU THINK THAT NEW AND EXISTING BUSINESSES WHICH MOSTLY GET FACILITIES FROM BANK AT THIS PERIOD ARE EITHER FOLDING UP OR LEAVING THE COUNTRY?.

🇲🇦Morocco — 2.25%
🇿🇦South Africa — 7.0%
🇹🇳Tunisia — 7.5%
🇰🇪Kenya — 9.75%
🇪🇬Egypt — 24.0%
🇬🇭Ghana — 25.0%
🇳🇬Nigeria — 27.5%

#Statisense

zopaks:
Lol.... I sorry for Naija!

when you manipulate statistics for propaganda purposes , this is what you get.

They manipulated and reduced the inflation rate from 33 percent to 21 percent but refused to reduce the interest rate from 27 percent to 21 percent.

Now if you want to borrow loans from bank, they charge you an astonishing 2.95% monthly 35.4% yearly 😲

Commercial banks now as per personal/consumer loan is 35%. Then add 1% Management Fee, 1% Advisory Fee and 1% Insurance Fee, all upfront. This brings the total percentage to 38%.

There's another catch, if you're applying for their loans via their app, monthly rates quoted are between 3.5 - 4.2%. It's sad.

correctguy101:
Before the so-called lunatic in ya comment. Was it any different?

.

ONE THING MOST PEOPLE DON’T UNDERSTAND IS THIS, DURING BUHARI'S ADMINISTRATION, BUSINESSESS STRIVE FAR BETTER THAN WE HAVE IT NOW, IF THERE IS ANY GOOD THING THAT BUHARI'S GOVERNMENT ACHIEVED, THAT WAS, EMPOWERING LOTS OF ENTREPRENEUR.

HE MANDATED COMMERCIAL BANKS THROUGH CBN TO GIVE RETAIL & SME LOANS, AND LOTS OF BANKS IN NIGERIA WHO FAILED TO GIVE THE BENCH MARK FIGURE WERE PENALIZE FOR NOT MEETING TO TARGET OR FOR NOT GIVING OUT LOAN AS MOST BANKS STAFF WERE GIVEN TARGET ON NUMBER OF CUSTOMERS THAT THEY MUST GIVE LOANS TO, ON A WEEKLY BASE. THIS WAS NOT STORY, IT HAPPENED HERE IN NIGERIA. BUT TODAY, REVERSE IS NOW THE CASE.

2015 PRIOR TO 2023, THE HIGHEST BANK RATE THEN WAS 19%. SOME BANKS WERE EVEN GIVING WOMEN IN BUSINESS LOAN, UP TO THE TONE OF 9%. THAT WAS DURING THE BUHARI'S ADMINISTRATION. FAST FORWARD TILL DATE. THE LOWEST BANK RATE AS AT NOW IS 27%, EXCLUDING INSURANCE RATE, MANAGEMENT AND PROCESSING RATE, SOME BANKS WILL STILL CHARGE YOU VAT FOR GIVING YOU LOAN.

THIS IS NEVER THE RIGHT TIME FOR ANY NEW BUSINESS IN NIGERIA TO GO FOR A STARTUP LOAN IN ANY COMMERCIAL BANK, EVEN EXISTING BUSINESSES ARE FINDING IT VERY HARD TO SUSTAIN THEIR LOAN REPAYMENT AS AT DATE.

When you have over 100% inflation in 2 years 27% interest rate is still b.s

Gotocourt:
Commercial banks now as per personal/consumer loan is 35%. Then add 1% Management Fee, 1% Advisory Fee and 1% Insurance Fee, all upfront. This brings the total percentage to 38%.

There's another catch, if you're applying for their loans via their app, monthly rates quoted are between 3.5 - 4.2%. It's sad.

They are still better, those loan apps charges Nigerians 19% per month on loan.

For you to be successful with loan in Nigeria this period, you need to do a business that fetch you extra ordinary profits.

Why is it this high in Nigeria?
Someone should educate us please.

DrMB:
Why does Nigeria’s interest rate soar at 27.5% while Morocco barely nudges 2.25%? What drives such stark differences across African economies, policy choices, inflation, or external pressures? How do these rates shape everyday life, from loans and mortgages to business growth and investment? As central banks across the continent adjust their monetary levers, understanding the story behind the numbers is more urgent than ever.


https://x.com/StatiSense/status/1960026601959166069

Morocco is a major industrial country in Africa; it manufactures and exports over 700,000 automobiles, aircraft spare parts, fertilisers, and food. That indicates low inflation and low interest rates.

Nigeria produces a limited number of products; it imports the majority of its goods and has a substantial external debt. Consequently, the country experiences high inflation and high interest rates to encourage saving and portfolio investments.

NOETHNICITY:
Why is it this high in Nigeria?
Someone should educate us please.

Morocco is a major industrial country in Africa; it manufactures and exports over 700,000 automobiles, aircraft spare parts, fertilisers, and food. That indicates low inflation and low interest rates.

Nigeria produces a limited number of products; it imports the majority of its goods and has a substantial external debt. Consequently, the country experiences high inflation and high interest rates to encourage saving and portfolio investments.

High inflation often leads to higher interest rates as central banks raise rates to cool the economy and control prices. When inflation is high, lenders and investors also anticipate future price increases, requiring higher interest rates to maintain the real value of their money.
Why central banks raise interest rates during inflation
To slow down the economy:
Central banks increase interest rates to make borrowing more expensive, which discourages spending and investment.
To encourage saving:
Higher interest rates make saving money more attractive, encouraging people to save rather than spend.
To reduce demand:
By slowing spending and boosting saving, higher rates reduce the demand for goods and services, which can help to slow down price increases.

DEBJOCH1:
.

ONE THING MOST PEOPLE DON’T UNDERSTAND IS THIS, DURING BUHARI'S ADMINISTRATION, BUSINESSESS STRIVE FAR BETTER THAN WE HAVE IT NOW, IF THERE IS ANY GOOD THING THAT BUHARI'S GOVERNMENT ACHIEVED, THAT WAS, EMPOWERING LOTS OF ENTREPRENEUR.

HE MANDATED COMMERCIAL BANKS THROUGH CBN TO GIVE RETAIL & SME LOANS, AND LOTS OF BANKS IN NIGERIA WHO FAILED TO GIVE THE BENCH MARK FIGURE WERE PENALIZE FOR NOT MEETING TO TARGET OR FOR NOT GIVING OUT LOAN AS MOST BANKS STAFF WERE GIVEN TARGET ON NUMBER OF CUSTOMERS THAT THEY MUST GIVE LOANS TO, ON A WEEKLY BASE. THIS WAS NOT STORY, IT HAPPENED HERE IN NIGERIA. BUT TODAY, REVERSE IS NOW THE CASE.

2015 PRIOR TO 2023, THE HIGHEST BANK RATE THEN WAS 19%. SOME BANKS WERE EVEN GIVING WOMEN IN BUSINESS LOAN, UP TO THE TONE OF 9%. THAT WAS DURING THE BUHARI'S ADMINISTRATION. FAST FORWARD TILL DATE. THE LOWEST BANK RATE AS AT NOW IS 27%, EXCLUDING INSURANCE RATE, MANAGEMENT AND PROCESSING RATE, SOME BANKS WILL STILL CHARGE YOU VAT FOR GIVING YOU LOAN.

THIS IS NEVER THE RIGHT TIME FOR ANY NEW BUSINESS IN NIGERIA TO GO FOR A STARTUP LOAN IN ANY COMMERCIAL BANK, EVEN EXISTING BUSINESSES ARE FINDING IT VERY HARD TO SUSTAIN THEIR LOAN REPAYMENT AS AT DATE.

The Buhari government increased the debt profile from $10 billion to $43 billion
Introduce ways and means, which is a form of printing money to the tune of N27 Trillion, that further puts pressure on the Naira
Close the border that led to the shortage of foodstuffs, which further increases food inflation
Spent $1.5 billion a month protecting the Naira
Spent $22 billion in 2022 on fuel subsidies.

I am not here to defend Tinubu, I think he is a bad president , but Buhari was even worse as Nigeria's president.