The Central Bank of Nigeria (CBN) has disclosed that credit to Nigeria’s private sector rose to N76.27 trillion in March 2025.
The CBN in its latest data release said the figure reflects a marginal increase of 0.03 per cent from the N76.25 trillion recorded in February 2025.
It further showed that the figure, is, however, below the N77.38 trillion recorded in January 2025.
The decline from January to March 2025, which represents a cumulative drop of N1.11 trillion, highlights the cautious stance adopted by financial institutions in response to evolving macroeconomic dynamics, including the CBN’s monetary policy tightening, rising interest rates, and inflationary pressures.
According to the Money and Credit Statistics published by the apex bank, the slow credit growth in the private sector may reflect concerns about elevated non-performing loans (NPLs), weak consumer demand, and a challenging business environment that has made banks more risk-averse.
While the CBN did not release the detailed sectoral credit breakdown for March, earlier figures suggest that the bulk of credit allocation continues to flow into the manufacturing, general commerce, and oil and gas sectors.
In the apex bank’s Economic Report for January 2025, CBN stated, “In terms of sectoral distribution, the services sector maintained the largest share at 54.87 per cent, followed by the industry sector at 40.02 per cent, while the agriculture sector accounted for 5.11 per cent. Notably, the share of the agriculture sector was higher than the 4.82 per cent recorded a month earlier.”
The decline in credit to the private sector from January to March 2025 coincides with the CBN’s hawkish monetary stance and its stringent attempt to curb inflation and stabilize the naira.
