Credit score to Nigeria’s personal sector fell to N75.8 trillion in August 2025 from N76.12 trillion in June 2025.
That is based on the most recent knowledge from the Central Bank of Nigeria (CBN).
Based on the CBN, this marks the fifth time this 12 months that lending to companies and people has declined.
Based on the information, the credit score to personal sector peaked in April 2025, recording N78.1 trillion.
This pattern of declining credit score started in February 2025 when whole personal sector credit score fell from N77.3 trillion in January to N76.3 trillion.
The downward motion continued in March, slipping additional to N75.9 trillion. Though April witnessed a brief rebound to N78.1 trillion, the positive aspects have been short-lived as credit score declined once more in Might and June.
In distinction, the year-on-year knowledge reveals a rise from N74.7 trillion in August 2024 to N75.8 trillion in August 2025.
Nevertheless, the repeated month-to-month declines in 2025 elevate issues over potential liquidity constraints, decreased lending urge for food by banks, or waning credit score demand from the personal sector amid tight financial situations.
CBN didn’t launch knowledge for July 2025.
Sectoral breakdown of credit score allocations
Whereas the CBN didn’t launch the detailed sectoral credit score breakdown for August 2025, earlier figures counsel that the majority of credit score allocation continues to circulate into the manufacturing, normal commerce, and oil and fuel sectors.
Within the apex bank’s Financial Report for January 2025, CBN acknowledged, “By way of sectoral distribution, the companies sector maintained the most important share at 54.87 per cent, adopted by the trade sector at 40.02 per cent, whereas the agriculture sector accounted for five.11 per cent. Notably, the share of the agriculture sector was larger than the 4.82 per cent recorded a month earlier.”
The decline in credit score to the personal sector coincides with the CBN’s hawkish financial stance and its stringent try to curb inflation and stabilise the naira.
Dr. Paul Alaje, Chief Economist and CEO of SPM Professionals, acknowledged the necessity for CBN to cut back coverage fee “in order that it’s simpler for traders to place cash in companies and we are able to see an enlargement in our economic system.”
Additionally, based on Kitan Aloba, analyst at Ren Cash, the benchmark MPR fee, at present at 27%, has made “borrowing costlier, thus affecting the personal sector’s urge for food for credit score.”
What you must know
At its 302nd assembly in Abuja, the CBN decreased the MPR by 50 foundation factors, bringing it down from 27.5% to 27%.
As well as, the MPC adjusted the uneven hall across the benchmark fee to +250/-250 foundation factors, in comparison with the earlier +500/-100 foundation factors.
The Committee retained the Money Reserve Ratio (CRR) for industrial banks at 45 per cent, whereas that of service provider banks was set at 16 per cent.
Slower progress in personal sector credit score might weigh on funding, job creation, and total GDP progress, particularly in a rustic the place the personal sector accounts for a big share of financial exercise.
Whereas the federal authorities has launched some intervention schemes, together with the Nigerian Shopper Credit score Company, their affect seems restricted within the face of broader financial tightening.
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