Banks Extend N36.4trn Credit to Trade Sector in 2025
Nigerian deposit money banks disbursed N36.39 trillion in credit to the Trade and General Commerce sector in the first nine months of 2025, according to Central Bank of Nigeria data.
The figure represents a 0.96% increase from N36.05 trillion recorded in the same period of 2024, reflecting modest year-on-year growth driven largely by stronger lending in Q3 2025.
August 2025 saw the highest credit distribution at N5.06 trillion, followed by September at N4.85 trillion. July recorded N4.51 trillion, marking a rebound after a slow start to the year.
In contrast, January and February 2025 posted the lowest disbursements at N3.48 trillion and N3.54 trillion, respectively. On average, banks distributed N4.04 trillion monthly, slightly higher than N4.01 trillion in 2024.
Credit growth has been tempered by high interest rates, with commercial lending costs reaching 30%. The Monetary Policy Rate was pegged at 27.5% before being cut to 26.5% in February, offering some relief.
Former CIBN President Prof. Segun Ajibola said credit growth depends on demand dynamics and policy signals. “Dropping rates is an invitation to do more. It signals the direction of the economy,” he noted.
Organised private sector leaders, including LCCI’s Dr. Chinyere Almona, urged stronger lending to productive activities and infrastructure. “We want to see more credit to the private sector for productive activities,” she said.
Manufacturers Association DG Segun Ajayi-Kadir added that lower borrowing costs could expand operations and boost SMEs, while CPPE’s Dr. Muda Yusuf warned that weak transmission between policy rates and lending rates remains a challenge.
SOURCE: The PUNCH