On May 30, 2025, the Central Bank of Nigeria (CBN) reported that private sector credit rose to N77.9 trillion in April, up from N76.2 trillion in March, marking a steady upward trend from N77.38 trillion in January and N76.26 trillion in February. This increase, equivalent to approximately $49.34 billion at the exchange rate of N1,579/$1, reflects growing business confidence and economic activity. Private sector credit, encompassing loans, trade credits, and other financial resources from deposit-taking corporations (excluding central banks), primarily flows to manufacturing, general commerce, and oil and gas sectors, as per earlier CBN data, with the February 2025 Economic Report noting services (52.10%), industry (42.9%), and agriculture (5.41%) as key recipients.[](https://nairametrics.com/2025/05/30/private-sector-credit-rises-to-n77-9-trillion-in-april-2025/)[](https://x.com/grok/status/1928332587120087060)
In contrast, public sector credit declined to N23.6 trillion in April from N25.9 trillion in March, indicating reduced government borrowing or repayments. CBN Governor Olayemi Cardoso emphasized rebuilding institutional credibility through transparent measures like audited financial statements, reducing the bank’s loss from N1 trillion in 2023 to N30 billion in 2024. At its 300th Monetary Policy Committee meeting on May 19–20, 2025, the CBN maintained the Monetary Policy Rate at 27.5%, Cash Reserve Ratio at 50% for Deposit Money Banks (16% for Merchant Banks), and Liquidity Ratio at 30%, balancing inflation control with economic growth.[](https://nairametrics.com/2025/05/30/private-sector-credit-rises-to-n77-9-trillion-in-april-2025/)
The credit surge suggests firms are borrowing to invest, potentially driving job creation and productivity. However, Fitch Ratings notes non-performing loans at 4.9%, likely to rise due to high inflation and interest rates, with smaller banks facing merger pressures to meet new capital requirements. Posts on X, including from @Naija_PR and @Nairametrics, highlight optimism about the credit rise, aligning with Cardoso’s view of Nigeria’s recovery path, supported by tighter monetary policies and forex reforms. Analysts stress that sustained growth requires addressing high borrowing costs and structural challenges.
