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Nigerian deposit money banks reduced credit to eight major sectors by N5.45 trillion in 2025 after the CBN withdrew regulatory forbearanceManufacturing recorded a N1.92 trillion drop in bank lending, while MAN warned the decline threatens factory output and jobsAnalysts expect credit to recover in 2026 as banks complete balance sheet clean-up under the CBN recapitalisation programme
Deposit money banks in Nigeria extended N5.45 trillion less credit to eight major sectors of the economy in 2025, with total lending falling 14.8% to N31.31 trillion from N36.77 trillion the previous year, according to figures published by the Central Bank of Nigeria (CBN).
The reduction followed the CBN’s decision to discontinue regulatory forbearance, a policy that had previously permitted banks to restructure problem loans and temporarily breach prudential limits without incurring regulatory penalties.
Bank lending to manufacturing fell by N1.92 trillion Photo: BloombergSource: Getty Images
Once the policy was withdrawn, lenders were required to recognise impaired
