the impact of public policy on the banking system in nigeria

Table 4
Selected Commercial Bank Interest Rates and Inflation: 1968-94
(% per annum)
Year Inflation 3 Month Deposit Rate Lending Rate
nominal real nominal real
1968 -1.2 3.50 4.8 10.0 11.3
1969 11.0 3.00 -7.2 10.0 -0.9
1970 13.2 3.00 -9.0 10.0 -2.8
1971 16.5 3.00 -11.6 8.0 -7.3
1972 3.3 3.00 -0.3 10.0 6.5
1973 4.8 3.00 -1.7 10.0 5.0
1974 13.1 3.00 -8.9 10.0 -2.7
1975 34.0 3.00 -23.1 9.0 -18.7
1976 23.9 2.50 -17.3 10.0 -11.2
1977 13.9 3.00 -9.6 6.0 -6.9
1978 21.9 4.75 -14.1 11.0 -8.9
1979 11.5 5.50 -5.4 11.0 -0.5
1980 10.1 5.70 -4.0 9.5 -0.5
1981 20.9 5.75 -12.5 10.0 -9.0
1982 7.6 7.50 -0.1 11.4 3.5
1983 23.3 7.25 -13.0 11.5 -9.5
1984 39.6 9.25 -21.7 13.0 -19.1
1985 7.4 9.25 1.7 11.75 4.1
1986 5.7 9.75 3.8 12.0 6.0
1987 11.4 14.90 3.1 19.0 6.8
1988 54.5 13.00 -26.9 17.0 -24.3
1989 50.4 20.50 -19.9 25.7 -16.4
1990 7.4 19.80 11.6 26.5 17.8
1991 13.0 15.20 2.0 21.0 7.1
1992 44.6 20.80 -16.5 31.2 -9.3
1993 57.0 23.60 -21.3 39.1 -11.4
1994 70.0 13.40 -33.3 21.0 -28.8
The lending rate up to 1989 is that specified for ’o<strong>the</strong>r advances’ by <strong>the</strong> CBN, i.e. non
preferred sectors. From 1990 onwards it is <strong>the</strong> maximum lending rate. Real rates are pre-tax.
Sources: Central Bank <strong>of</strong> Nigeria Annual Reports and Economic and Financial Reviews,
various issues, IFS.
28