United Bank for Africa, UBA, new interest rates will not affects loans and fixed deposits contracted before the deregulation.
According to UBA sources, such loans and fixed deposits will continue at their previous contractual rates until maturity.
The sources said that the floating rates will automatically be adjusted in accordance with the prevailing prime lending rates. The new rates which the bank has directed all its branches throughout the country to display ranges from 14% to 18%.
Savings deposit which give banks bulk of their deposits will now attract 14% per annum while time deposit otherwise called fixed deposit now has an interest of 15¬Ω %. Deposit of over 6 months will attract 16%.
The bank’s prime lending rate on which it lends to borrowers has been fixed at 18%. Depending on the risk involved on the loan, it could be more than the 18 per cent, the source further said.
The new interest rates structure became effective at the end of August 1987.
The Republic Stock Index 3/7/87 – 9/7/87
Sectional indices
Sectors 3/7/87 6/7/887 7/7/87 8/7/87 9/7/87
Automobile & Tyre 288.7 288.7 288.7 288.7 288.7
Banking 277.5 276.6 276.6 276.6 276.6
Breweries 101.7 102.0 102.0 151.2 153.4
Building Materials 201.3 201.3 201.3 201.3 201.3
Chemical & Paints 147.2 147.2 147.2 147.2 147.2
Commercial 183.5 183.5 183.5 183.5 183.5
Computer & Office Equipment 357.9 357.9 357.9 357.9 357.9
Conglomerates 170.6 167.3 167.4 167.4 167.4
Construction 78.4 78.4 78.4 78.4 78.4
Soap & Toiletries 213.4 213.4 213.4 213.4 213.4
Food/Beverages & Tob. 175.3 175.3 175.3 174.3 175.3
Foot Wear 277.4 277.4 277.4 277.4 277.4
Industrial Domestic 108.9 108.9 108.9 108.9 108.9
Investment Company 145.0 145.0 145.0 145.0 145.0
Machinery Marketing 82.8 82.8 82.8 82.8 82.8 82.8
Packaging 108.4 104.4 108.4 108.4 108.4
Petroleum Marketing 163.1 163.1 160.2 160.2 160.2
Pharmaceutical & An F. 180.9 180.9 180.9 180.9 180.9
Publishing 129.9 129.9 129.9 129.9 129.9
Textiles 458.6 458.6 458.6 458.6 458.6
Common Stock Indices 195.3 194.3 193.5 195.3 195.3
Developed by the Economic unit of The Republic with data from Research and information department of The Nigerian Stock Exchange. Reference date 7/6/87
