Several Deposit Money Banks (DMBs) in Nigeria have adjusted their savings interest rates upward following changes to the benchmark policy rate set by the Central Bank of Nigeria (CBN), in a move aimed at encouraging deposits and boosting financial savings.
In customer updates, some commercial banks now offer annual savings rates in the range of 7 to 8 percent. Notably, Wema Bank announced an increase in its savings rate to 7.95 percent per annum across multiple account categories, including savings accounts (Tier 1–3), salary accounts, and other variants.
The bank also disclosed that WTA Individual and Non-Individual accounts now attract 3.975 percent interest annually, while encouraging customers to maintain positive balances and limit withdrawals to a maximum of four transactions per month to qualify for interest earnings.
At the current rate, a customer who saves ₦100,000 over a year could earn approximately ₦7,950 before tax, assuming stable rates and standard interest calculations.
Despite the upward adjustment, reactions among customers have been mixed, with many noting that returns remain significantly below the country’s inflation rate.
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Data from the National Bureau of Statistics (NBS) shows that Nigeria’s headline inflation stood at 15.06 percent year-on-year in February 2026, only slightly lower than 15.10 percent recorded in January. Every month, inflation rose by 2.01 percent, indicating renewed short-term price pressures.
Food inflation, one of the most critical components of household spending, also climbed sharply, rising 12.12 percent year-on-year and 4.69 percent month-on-month, reflecting increasing costs of essential goods.
Vice Chairman of Highcap Securities, David Adonri, noted that rising food prices continue to strain household incomes, limiting both savings and consumption.
Similarly, Progressive Shareholders Association of Nigeria President, Boniface Okezie, said that while higher savings rates may attract deposits, they do little to improve real household wealth.
According to him, depositors are still experiencing negative real returns, as inflation continues to outpace interest earnings, effectively eroding purchasing power.
The CBN’s recent monetary tightening is part of broader efforts to stabilize prices and manage inflation. While higher policy rates typically push up lending and deposit rates, analysts note that the impact on savings accounts is often slower and less significant compared to borrowing costs.
Experts warn that meaningful improvements in consumer purchasing power will depend on sustained declines in inflation and stronger income growth. Until then, modest increases in savings rates are unlikely to offset the broader impact of rising living costs on Nigerian households.
