Commercial banks are letting  some of their customers  know that they are about to increase interest rates on loans in response to the economic situation in the country.

Account officers of some banks have started calling customers with consumer loans to expect an interest rate hike. This means customers with personal loans, mortgage loans and other forms of loans should expect communication from their banks that interest rates may rise soon according to multiple sources.

Nigeria has witnessed galloping inflation in recent months jumping to as high as 18.17% in March before tapering to 18.12% in April.

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Despite the rising inflation rate, the central bank monetary policy rates (MPR), which is a benchmark for interest rate setting remains at 11.5%.

The Central Bank in its monetary policy committee meeting held last week reiterated its preference for cheaper credit to the real sector of the economy citing its effect on spurring economic growth.