Credit to Nigeria’s private sector recorded a notable rise in October 2025, climbing to N74.41 trillion from N72.53 trillion in September, according to newly released figures from the Central Bank of Nigeria.
The N1.88 trillion increase represents a month-on-month expansion of 2.60 percent, marking the strongest lending momentum seen so far this year.
The surge came immediately after the Monetary Policy Committee lowered the benchmark interest rate by 50 basis points to 27 percent in September, the first time the rate had been reduced in five years. The move followed easing inflationary pressures and a more stable foreign exchange environment.
At the Committee’s November meeting, the rate was retained, while adjustments were made to the corridor around the MPR to discourage banks from holding excess liquidity with the CBN. Policymakers signalled that they remain cautious about balancing inflation control with credit expansion.
The News Chronicle gathered that the October upturn reflected renewed risk appetite among lenders, especially in sectors that had delayed borrowing decisions earlier in the year. Commercial banks are said to be responding to the more accommodating monetary stance by reviewing credit lines that were previously suspended.
Private sector credit grew by just N0.34 trillion in the year after October 2024, implying that the true narrative resides in short-term momentum rather than in long-term expansion.
Lending patterns have been uneven throughout 2025; credit volumes have increased and decreased in response to tight liquidity circumstances, inflationary swings, and market volatility.
Rising from N96.69 trillion in September, the October comeback also brought total local credit to N99.20 trillion. Government credit constituted one quarter of this total, with the private sector contributing approximately three quarters.
This is quite a change from a year prior, when government borrowing made up a far greater proportion of all credit.
While the private sector has remained basically steady, the fall in government credit explains the general decline in domestic lending relative to 2024.
Analysts claim the recent recovery indicates fresh confidence, yet they caution that the power of credit flows going into 2026 will depend on inflation and liquidity control.
Though the October numbers point to a turning point, translating it into long-term economic growth will need consistent governmental support.
