Credit to Nigeria’s private sector (CPS) has surged dramatically over the past two years, increasing by 75.9% to an all-time high of N117.783 trillion as of September 2025, up from N66.944 trillion in September 2023.

CPS encompasses loans, trade credits, and other receivables provided by banks to the private sector within a given period, serving as a key indicator of the banking sector’s balance sheet resilience and its contribution to the national economy.

Data from the Central Bank of Nigeria (CBN) shows steady year-on-year growth, with CPS rising from N66.94 trillion in September 2023 to N109.411 trillion in September 2024, and finally to N117.783 trillion in September 2025.

On a quarterly basis in 2025, CPS grew by 2.2% to N115.815 trillion in Q1’25 from N113.355 trillion in December 2024, increased by 1.2% to N117.200 trillion in Q2’25, and further edged up 0.5% to N117.783 trillion in Q3’25.

Experts said the rise in private sector credit signals a major boost for economic growth, highlighting the crucial link between credit availability and economic activity.

Olatunde Amolegbe, former President of the Chartered Institute of Stockbrokers, said:

“Increased private sector credit implies a major boost for the economy. If the CBN continues to reduce the Monetary Policy Rate (MPR) and enforces limits on Deposit Money Banks’ loans-to-deposits ratios, commercial banks are likely to increase credit creation over the short to medium term.”

Tajudeen Olayinka added:

“Credit is growth-enhancing, even when trade openness, monetary policy, investment climate, and infrastructure are weak. For Nigeria to sustain economic growth, continuous expansion of private sector credit — the engine of growth — is essential.”

However, Dr. Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise (CPPE), cautioned that the distribution of credit remains uneven, with small businesses — critical for job creation and economic inclusion — potentially receiving limited benefits. He emphasized the need for expansive credit allocation across all sectors and company sizes to ensure inclusive economic growth.