Credit to private sector drops to N75.8trn in August 2025, says CBN

The Central Bank of Nigeria (CBN) has disclosed that credit to private sector fell to N75.8 trillion in August 2025 from N76.12 trillion in June 2025.

The decline in credit to the private sector coincides with the CBN’s hawkish monetary stance and its stringent attempt to curb inflation and stabilise the naira.

According to the CBN, this marks the fifth time this year that lending to businesses and individuals has declined.

According to the data, the credit to private sector peaked in April 2025, recording N78.1 trillion.

This trend of declining credit began in February 2025 when total private sector credit fell from N77.3 trillion in January to N76.3 trillion.

The downward movement continued in March, slipping further to N75.9 trillion. Although April witnessed a temporary rebound to N78.1 trillion, the gains were short-lived as credit declined again in May and June.

In contrast, the year-on-year data shows an increase from N74.7 trillion in August 2024 to N75.8 trillion in August 2025.

However, the repeated monthly declines in 2025 raise concerns over potential liquidity constraints, reduced lending appetite by banks, or waning credit demand from the private sector amid tight economic conditions.

While the CBN did not release the detailed sectoral credit breakdown for August 2025, 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.”