Credit score to personal sector hits N76.27 trillion in March 2025 – CBN says 

That is in keeping with the most recent information launched by the Central Financial institution of Nigeria (CBN).

Nevertheless, the determine nonetheless trails the N77.38 trillion recorded in January 2025, indicating a broader pattern of credit score tightening amid prevailing financial circumstances.

The decline from January to March 2025, which represents a cumulative drop of N1.11 trillion, highlights the cautious stance adopted by monetary establishments in response to evolving macroeconomic dynamics, together with the CBN’s financial coverage tightening, rising rates of interest, and inflationary pressures.

In accordance with the Cash and Credit score Statistics printed by the apex financial institution, the sluggish credit score progress within the non-public sector might replicate considerations about elevated non-performing loans (NPLs), weak client demand, and a difficult enterprise surroundings that has made banks extra risk-averse.

Sectoral Breakdown and Implications

Whereas the CBN didn’t launch the detailed sectoral credit score breakdown for March, earlier figures recommend that the majority of credit score allocation continues to circulation into the manufacturing, basic commerce, and oil and fuel sectors.

Within the apex financial institution’s Financial Report for January 2025, CBN said, “In phrases 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 greater than the 4.82 per cent recorded a month earlier.” 

Financial analysts attribute the tepid credit score enlargement to each demand- and supply-side constraints.

On the demand aspect, companies are more and more reluctant to borrow because of the excessive value of funds, whereas on the provision aspect, banks are tightening lending standards resulting from perceived credit score dangers and restricted entry to long-term funds.

The decline in credit score to the non-public sector from January to March 2025 coincides with the CBN’s hawkish financial stance and its stringent try to curb inflation and stabilize the naira.

Analysts say the benchmark MPR price, at the moment at 27.5%, might have made borrowing dearer, thus affecting the non-public sector’s urge for food for credit score.

What This Means  

Slower progress in non-public sector credit score might weigh on funding, job creation, and general GDP progress, particularly in a rustic the place the non-public sector accounts for a big share of financial exercise.

Whereas the federal authorities has launched some intervention schemes, together with the not too long ago launched Nigerian Client Credit score Company, their impression seems restricted within the face of broader financial tightening.

Stakeholders within the monetary sector are calling for focused reforms to enhance entry to credit score for productive sectors and MSMEs, together with credit score ensures, regulatory incentives, and improved risk-sharing frameworks.