Nigerian deposit money banks extended a total of N36.39 trillion in credit to the Trade and General Commerce sector during the first nine months of 2025, marking a slight increase of 0.96% from N36.05 trillion in the same period of 2024.
The growth, according to the Central Bank of Nigeria’s Q3 2025 bulletin, was driven largely by stronger lending in the third quarter, with August leading at N5.06 trillion, followed by September at N4.85 trillion.
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The report showed that credit disbursements started slowly in January and February at N3.48 trillion and N3.54 trillion, respectively, before picking up from March onward.
On average, banks disbursed N4.04 trillion monthly in 2025, slightly higher than the N4.01 trillion monthly average in 2024.
The Monetary Policy Committee’s recent 50-basis-point reduction in the benchmark rate, bringing the Monetary Policy Rate to 26.5%, is expected to ease borrowing costs for businesses.
Analysts and private sector leaders, including Prof Segun Ajibola, former CIBN president, say that credit growth depends on both demand from borrowers and guidance from monetary authorities.
The Director-General of the Lagos Chamber of Commerce and Industry, Dr Chinyere Almona, noted that the rate cut should stimulate stronger private sector lending and infrastructure investment, while Segun Ajayi-Kadir of the Manufacturers Association of Nigeria highlighted that lower borrowing costs could boost machinery acquisition, business expansion, and SME performance.
The President of the Association of Small Business Owners of Nigeria, Dr Femi Egbesola, echoed that the rate cut could support SME lending if banks pass on the benefits.
Meanwhile, Dr Muda Yusuf of the Centre for the Promotion of Private Enterprise cautioned that weak transmission between policy rates and lending rates remains a challenge, with high operating costs and structural bottlenecks continuing to constrain credit flow.
