Nigeria’s private sector has witnessed unprecedented growth in credit facilities over the past two years, with the Central Bank of Nigeria (CBN) reporting a 75.9% increase to N117.783 trillion as of September 2025, up from N66.944 trillion in September 2023.
The private sector credit (CPS) encompasses loans, trade credits, and other forms of bank-provided financial support to businesses, reflecting the banking sector’s resilience and its role in driving economic activity.
CBN data shows that the growth has been consistent year-on-year, rising from N66.944 trillion in 2023 to N109.411 trillion in 2024, and ultimately reaching the all-time high of N117.783 trillion in 2025. On a quarterly basis, the credit extended to the private sector grew by 2.2% to N115.815 trillion in the first quarter, further increasing by 1.2% to N117.200 trillion in the second quarter, and edging up by 0.5% to N117.783 trillion in the third quarter of 2025.
Economists and financial experts see the surge in private sector credit as a positive indicator for the nation’s economic trajectory. Olatunde Amolegbe, former President of the Chartered Institute of Stockbrokers, said the trend underscores a clear link between private sector lending and economic growth. “Credit to the private sector is a major boost for the economy. If the CBN continues to ease the Monetary Policy Rate (MPR) and enforces the loans-to-deposits ratio, commercial banks are likely to expand their lending further, supporting growth over the short to medium term,” Amolegbe noted.
Similarly, Tajudeen Olayinka emphasized that credit remains a key driver of economic expansion even in environments with limited trade openness or infrastructural challenges. “For Nigeria to sustain continuous economic growth, there must be a steady increase in private sector credit, which is widely regarded as the engine of growth,” he said.
However, some analysts have urged caution over the credit distribution. Dr. Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise (CPPE), highlighted concerns that small and medium-sized enterprises (SMEs), which are critical for job creation and economic inclusion, may not be benefiting proportionately. “While overall credit is growing, the allocation across sectors and company sizes remains uneven. Small businesses, which contribute significantly to employment and inclusion, are often sidelined,” Yusuf explained.
The sustained expansion of private sector credit in Nigeria, if coupled with equitable distribution, is expected to strengthen business activities, boost job creation, and reinforce economic stability in the coming years.