Credit to Nigeria’s private sector climbed to ₦77.9 trillion in April 2025, up from ₦76.2 trillion in March, according to the latest figures from the Central Bank of Nigeria.

The April total also surpassed the ₦77.38 trillion recorded in January and ₦76.26 trillion in February, highlighting a consistent upward trend in private sector lending over the first four months of the year.

In simple terms, credit to the private sector by banks means the money that banks and other financial institutions lend to businesses and individuals. This can come in the form of loans, trade credit, or buying financial assets, and it creates a repayment obligation for the borrower.

Although the CBN did not release a detailed sectoral breakdown for April, earlier data suggest that most of the credit continues to go to the manufacturing, general commerce, and oil and gas sectors.

According to the CBN’s February 2025 Economic Report, the services sector received the largest share of credit at 52.10%, followed by the industrial sector with 42.9%, while agriculture accounted for just 5.41%.

In contrast to the rise in private sector credit, lending to the public sector declined sharply in April.

Credit to the public sector fell to ₦23.6 trillion, down from ₦25.9 trillion in March, indicating a reduction in government borrowing or an increase in repayments during the period.

CBN Governor Olayemi Cardoso has reiterated that restoring institutional credibility is a top priority for the Central Bank of Nigeria.

As part of efforts to rebuild public trust and strengthen the bank’s role in maintaining monetary stability, the CBN has taken steps such as publishing its audited financial statements and disclosing net reserve figures.

He emphasized that the CBN is not a commercial bank and shouldn’t be evaluated using regular profit measures. Still, the turnaround from a loss of over ₦1 trillion in 2023 to a profit of around ₦30 billion in 2024 shows the significant reforms and fiscal discipline the bank has achieved in the last 18 months.

Despite global uncertainties and structural challenges, the CBN is confident that Nigeria is on a steady recovery path.

Measures like tighter monetary policy, exchange rate reforms, improved reserve management, and stronger coordination with fiscal authorities are set to enhance macroeconomic stability and support medium-term growth.

The rise in private sector credit signals increased economic activity and growing business confidence, suggesting that companies are more willing to borrow and invest—potentially driving job creation, higher productivity, and broader economic expansion.