Banks increase credit to trade sector as rates fall
Nigerian banks have boosted lending to the Trade and General Commerce sector, with credit rising slightly over the past year. Segun Ajibola, a former banking chairman, and other industry leaders highlighted the impact of recent interest rate cuts on business borrowing. The Central Bank’s decision to lower the Monetary Policy Rate has brought some relief to businesses, though concerns remain about how much these benefits reach borrowers. Experts urge more credit for productive activities and investment in infrastructure to support economic growth.
TLDR
- Banks disbursed N36.39tn in credit to the Trade and General Commerce sector in the first nine months of 2025, up from N36.05tn in the same period of 2024.
- The highest credit distribution in 2025 was in August (N5.06tn), followed by September (N4.85tn), while January and February saw the lowest figures.
- The Monetary Policy Rate was reduced by 50 basis points in February, easing the rate to 26.5 per cent.
- Segun Ajibola, Chinyere Almona, Segun Ajayi-Kadir, Femi Egbesola, and Muda Yusuf all emphasized the need for more effective credit transmission and investment in critical infrastructure.
- Analysts noted that while rate cuts can lower borrowing costs, challenges like inflation, exchange rate volatility, and structural issues still hinder lending to businesses.
