CBN records N74.41tn credit to private sector in one month

The Central Bank of Nigeria has disclosed that commercial banks extended a total of N74.41 trillion in credit to the private sector in a single month, highlighting the continued expansion of lending activities and the central role of banks in supporting economic growth. The report underscores the resilience of Nigeria’s financial system and signals the banking sector’s readiness to provide liquidity to businesses across various industries, including manufacturing, agriculture, trade, and services.

According to the apex bank, the increase in private sector credit reflects sustained confidence in economic recovery, improved credit management practices, and regulatory measures designed to enhance the availability of funds to productive sectors. Banks reportedly focused on both short-term and medium-term financing needs, providing working capital, trade finance, project funding, and equipment financing to businesses of all sizes. Analysts noted that such robust lending activity is a positive indicator for investment, job creation, and overall economic activity.

The CBN highlighted that lending to the manufacturing sector remained strong, supporting industrial expansion, modernization of production lines, and import substitution initiatives. Credit allocation to agriculture also recorded significant growth, aimed at boosting food production, enhancing value chains, and supporting rural economic development. Trade and services sectors benefited from loans to strengthen inventory management, distribution networks, and business operations, reflecting a balanced approach in channeling funds across critical areas of the economy.

Experts believe that the surge in credit is also influenced by policy measures encouraging banks to lend to priority sectors. The apex bank’s interventions, including incentives for lending to small and medium enterprises, have helped deepen financial inclusion and expand access to capital for entrepreneurs. By directing resources to sectors with high multiplier effects, the central bank aims to stimulate economic activity, increase employment, and foster sustainable growth.

Banks reportedly applied improved risk assessment frameworks and credit monitoring mechanisms to ensure responsible lending. Enhanced regulatory supervision, combined with modern credit evaluation tools, has reportedly reduced non-performing loans while enabling more businesses to access the capital they need. The CBN noted that these measures contribute to a healthier banking system and reinforce the stability of the financial sector.

The private sector’s access to N74.41 trillion in credit also reflects the continuing recovery of confidence among lenders and borrowers. Financial institutions are increasingly willing to extend medium- and long-term financing to projects with tangible economic impact, including infrastructure development, industrial expansion, and technology-driven initiatives. Observers said that higher credit levels can accelerate economic growth, stimulate demand for goods and services, and provide businesses with the resources needed to scale operations.

In addition to traditional banking credit, there has been increased attention to structured financing, export-import support, and capital market linkages that complement conventional loans. Analysts suggest that such diversification in credit provision enhances the resilience of the private sector, enabling businesses to manage cash flow, fund expansion, and mitigate operational risks.

Despite the positive figures, experts caution that careful monitoring is required to ensure that the rapid credit expansion does not trigger inflationary pressures or lead to excessive indebtedness. They advise that banks maintain sound risk management practices, while businesses are encouraged to deploy borrowed funds productively. The central bank is expected to continue its oversight to maintain a balance between credit growth and financial stability.

The report reinforces Nigeria’s ongoing effort to deepen private sector participation in the economy. By facilitating access to N74.41 trillion in credit, the banking sector is positioned to play a pivotal role in economic transformation, job creation, and industrial development. Stakeholders have welcomed the development, noting that it reflects both the dynamism of the financial system and the commitment of banks to supporting economic recovery.

The central bank reaffirmed its commitment to sustaining an enabling environment for credit expansion while ensuring the stability of the banking sector. Officials emphasized that continued engagement with financial institutions, monitoring of credit allocation, and promotion of responsible lending practices are central to achieving the dual objectives of economic growth and financial sector resilience.

 

As businesses tap into the available credit, the coming months are expected to witness increased investments, expansion of production capacities, and growth in trade activities, further contributing to the nation’s economic recovery and long-term development.