By Peter Egwuatu
Credit to the Private sector, CPS, in Nigeria has expanded significantly in the last two years, growing by 75.9 % to hit all time high of N117.783 trillion as at September 2025 from N66.944 trillion in the corresponding period 2023.
CPS includes loans, trade credits and other account receivables and supports provided by banks to the private sector within a period.
The CPS is a global measure of the banking sector’s balance sheet resilience and contribution to the national economy.
Findings from the Central Bank of Nigeria, CBN, data revealed that Year-on-Year, YoY, the CPS has been growing steadily from N66.94 trillion in September 2023 to N109.411 trillion in September 2024 and then to N117.783 trillion in September 2025.
According to experts, increased private sector credit implies a major boost for the economy, establishing a link between credit to the private sector and economic growth.
On quarterly basis for the year under review, the CPS grew by 2.2 % to N115.815 trillion in first quarter 2025, Q1’25 from N113.355 trillion in December 2024; it further grew by 1.2 % to N117.200 trillion in the second quarter, Q2’25, and then increased by 0.5% to N117.783 trillion in Q3’25.
Reacting to the development in the CPS, Olatunde Amolegbe, former, President Chartered Institute of Stockbrokers, said: “Increased private sector credit implies a major boost for the economy, as there is a link between credit to the private sector and economic growth.
“It is projected that credit to the private sector may continue to increase if the CBN continuously to reduce the Monetary Policy Rate, MPR. It is believed the re-enforcement of the CBN’s limit on Deposit Money Bank’s loans-to-deposits macro-prudential ratio will continue to drive the willingness of commercial banks to create risky assets over the short to medium term”.
Commenting as well, Tajudeen Olayinka said: “Credit is growth-enhancing, even when trade openness, monetary policy, investment climate and infrastructure are low.
“For Nigeria to keep having continuous economic growth there is need to have continuous increase in credit to the private sector that is regarded as the engine of growth”.
However, the Chief Executive Officer of the Centre for the Promotion of Private Enterprise, CPPE, Dr Muda Yusuf, said the credit outlook remained cautious, calling for an expansive distribution of credits across all tiers of companies and sectors.
According to Yusuf, “there are major concerns in terms of the distribution of credits across sectors and companies with small businesses, which contribute more to job creation and economic inclusion, not likely to benefit much”.
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