Nigerian Private Sector Credit Falls to N72.5 Trillion Despite CBN Rate Cut

Despite recent monetary policy easing by the Central Bank of Nigeria (CBN) to stimulate lending and business growth, private sector credit in Nigeria fell to N72.5 trillion in September 2025 from N75.9 trillion in August. This marks the sixth decline in lending to businesses and individuals this year.

The drop in private sector credit contrasts with the increase in government borrowing, reflecting banks' preference for lending to the government due to lower risk and guaranteed returns. Dr.

Chika Okafor, an economist based in Abuja, noted concerns about potential liquidity constraints and reduced lending appetite amid tight economic conditions.