Technically the title should be why your bank is hindering you from borrowing with very high interest rates.
According to the CBN Weighted Average Interest Rates charged by banks in the first half of 2017 was 23.79%. The banking sector provided a total credit of N63.27tn to finance the activities of the private sector in 2017, according to figures from the National Bureau of Statistics.
Studies have shown a relationship between monetary policy and credit to private sector. The rate charged to borrowers had a spread of 7.9% spread to the standing lending facility rate of 16%. The rate on the Lending Facility acts as the ceiling of the corridor because, in theory, no banks should be willing to borrow at a higher rate in private funding markets. As such the spread of 7.9% largely comprises of idiosyncratic risk/personal risk of the borrower.
The analysis suggests the rate of the lending facility may be a barrier to lower rates, as in comparison to the Chinese Lending Facility rate, which stood at 3.1% in the period.