Credit to the private sector rose slightly by 0.03 percent in March to N76.27 trillion, according to the Central Bank of Nigeria. This marks a marginal increase from N76.25 trillion in February but a cumulative decline of N1.11 trillion since January.
The drop reflects cautious lending by financial institutions, driven by tightening monetary policy, high interest rates, and inflation. The CBN’s benchmark lending rate currently stands at 27.5 percent.
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Analysts say slower credit growth is linked to weak consumer demand, concerns over non-performing loans, and a challenging business environment, which have made banks more risk-averse.
The CBN’s January report showed that the services sector received the largest share of credit at 54.87 percent, followed by industry at 40 percent, and agriculture at just over 5 percent. Stakeholders are calling for targeted reforms to ease credit access for MSMEs and key economic sectors.
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