January 20, 2026 — Loans extended by commercial and merchant banks in Nigeria fell to ₦52.656 trillion in June 2025, marking the lowest credit level in 14 months, according to the latest quarterly statistical bulletin released by the Central Bank of Nigeria (CBN).
This figure represents a ₦2.739 trillion decline from ₦55.395 trillion in May 2025 — a 4.95% month-on-month decrease — and is the weakest lending seen since April 2024, when total loans stood at ₦51.467 trillion.
Analysts suggest the prolonged credit contraction reflects a risk-averse posture by banks, as they prioritize compliance with the CBN’s ongoing recapitalization requirements ahead of the March 30, 2026 deadline.
The slowdown comes amid broader challenges facing the Nigerian banking sector, including rising non-performing loans and a tightening regulatory environment that has led lenders to focus more on balance sheet strengthening than aggressive credit expansion.
Key Highlights:📌 June 2025: ₦52.656 trillion (lowest in 14 months) 📌 May 2025: ₦55.395 trillion 📌 April 2024: ₦51.467 trillion
Banks are cutting back lending as they align with revised CBN capital requirements ahead of regulatory deadlines.
This persistent contraction in credit highlights ongoing structural and regulatory headwinds that may continue to shape lending trends and overall economic activity in the months ahead.
Image Credit: Nairametrics
Source : Nairametrics
