Bank lending to businesses and households in Nigeria has surged to an unprecedented N117.783 trillion as of September 2025, reflecting a 75.9% increase from N66.944 trillion recorded in the same month two years earlier, according to Central Bank of Nigeria (CBN) statistics.
The expansion in private sector credit—encompassing loans, trade financing, and other receivables—signals strengthening financial intermediation and underscores the banking industry’s growing role in fueling economic activity.
Year-over-year growth has been consistent: credit stood at N109.411 trillion in September 2024 before climbing to the current peak. On a quarterly basis in 2025, lending rose 2.2% to N115.815 trillion in the first quarter from N113.355 trillion at the end of 2024, gained another 1.2% to N117.200 trillion in the second quarter, and edged up 0.5% in the third quarter.
Experts Hail Growth Engine, Urge Broader Access
Analysts welcomed the trend as a vital driver of expansion. Olatunde Amolegbe, immediate past President of the Chartered Institute of Stockbrokers, described the credit boom as “a major economic booster,” citing established correlations between private borrowing and GDP growth.
“Further increases are likely if the CBN maintains a accommodative stance on the Monetary Policy Rate,” Amolegbe noted. He added that the regulator’s loan-to-deposit ratio framework continues to incentivize banks to deploy funds into productive assets rather than risk-free alternatives.
Investment strategist Tajudeen Olayinka emphasized credit’s outsized impact even amid infrastructure gaps or restrictive trade policies. “Sustained lending growth is indispensable for Nigeria’s economic engine—the private sector—to keep running,” he said.
Call for Inclusive Distribution
Despite the headline figures, concerns persist over allocation. Dr. Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise (CPPE), cautioned that smaller enterprises—key to employment and inclusive growth—may be sidelined.
“The current trajectory risks concentrating credit among large corporates,” Yusuf warned. “A more balanced sectoral and size-based distribution is essential to maximize job creation and broaden economic participation.”
Policymakers now face the dual challenge of sustaining credit momentum while ensuring funds reach underserved segments, including micro, small, and medium-sized enterprises that form the backbone of Nigeria’s informal economy.
