December 8, 2025/CSL Report
According to the latest data released by the Central Bank of Nigeria (CBN), total credit to the private sector declined by 0.17% month-on-month (m/m) to ₦56.9 trillion in October 2025, compared to ₦57.03 trillion in September. This represents a slight improvement from the previous month’s 1.98% m/m decline and marks the smallest month-on-month contraction recorded so far in the year.
It also reflects a notable recovery compared to the steep 4.08% drop in June, which amounted to a ₦2.4 trillion reduction in private-sector credit within a single month. The easing pace of contraction suggests a gradual shift in deposit money banks’ (DMBs) sentiment toward private-sector lending.
In our view, the high-interest-rate environment, which makes government securities and the CBN’s Standing Deposit Facility (SDF) more appealing to banks than extending credit to the relatively riskier private sector is largely responsible for the persistent decline in private sector lending seen through the year.
Click here to download full report: CSL Nigeria Daily – 08 December 2025 – Banks.docx
