Trade sector credit Nigeria rises to N36.39tn in nine months of 2025 as businesses call for cheaper loans and increased infrastructure investment

Nigerian deposit money banks disbursed a total of N36.39 trillion in credit to the Trade and General Commerce sector between January and September 2025, according to data released in the latest quarterly statistical bulletin of the Central Bank of Nigeria.

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The figure represents a modest 0.96 per cent increase from the N36.05 trillion recorded during the corresponding period of 2024, reflecting steady but cautious expansion in lending to businesses amid persistent calls for stronger private sector financing.

Analysis of the data showed that lending momentum strengthened significantly in the third quarter of 2025 after a relatively slow start to the year.

August recorded the highest credit disbursement at N5.06 trillion, followed by September at N4.85 trillion, while July posted N4.51 trillion, signalling a notable rebound in commercial activity.

By contrast, January and February recorded the lowest credit flows at N3.48 trillion and N3.54 trillion respectively before lending accelerated from March onward.

On average, banks extended about N4.04 trillion monthly to trade and commerce during the nine-month period, slightly above the N4.01 trillion monthly average recorded in 2024.

Despite the increase, borrowing conditions remained tight, with commercial lending rates hovering near 30 per cent following a prolonged period of monetary tightening.

The Monetary Policy Rate, which previously stood at a historic 27.5 per cent, was reduced by 50 basis points in February to 26.5 per cent, offering limited relief to businesses.

Economic analysts and members of the organised private sector have continued to advocate deeper credit flows to productive activities and critical infrastructure to unlock stronger economic growth.

Former Chairman of the Chartered Institute of Bankers of Nigeria, Professor Segun Ajibola, said credit expansion depends largely on demand signals and policy direction from monetary authorities.

Ajibola noted that lower interest rates serve as a powerful signal encouraging businesses to increase investment, adding that improved access to finance could generate multiplier effects across the economy.

Director-General of the Lagos Chamber of Commerce and Industry, Dr Chinyere Almona, described the rate cut as a bridge between economic reforms and measurable results, stressing the need for increased lending to productive sectors and sustained investment in infrastructure.

Similarly, Director-General of the Manufacturers Association of Nigeria, Segun Ajayi-Kadir, said reduced borrowing costs could enable firms to expand operations, invest in machinery and create employment if commercial banks transmit policy benefits effectively.

President of the Association of Small Business Owners of Nigeria, Dr Femi Egbesola, added that lower benchmark rates could ease banks’ funding costs and improve credit access for small and medium enterprises.

However, Chief Executive Officer of the Centre for the Promotion of Private Enterprise, Dr Muda Yusuf, warned that weak transmission between monetary policy adjustments and commercial lending rates remains a longstanding structural challenge.

He emphasised that high operating costs, risk premiums and infrastructure constraints continue to limit credit expansion, urging stronger intervention from development finance institutions to provide long-term and affordable funding to the real sector.

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The Trade sector credit Nigeria trend underscores both resilience within the business ecosystem and the urgent need for reforms capable of translating monetary policy easing into tangible economic growth.