By Nchetachi Chukwuajah
The Central Bank of Nigeria (CBN) says loans provided by commercial and merchant banks in Nigeria fell to a 14-month low of N52.656 trillion in June 2025.
According to the CBN’s latest quarterly statistical bulletin, the last time the figure fell below this threshold was in April 2024, when it stood at N51.467 trillion.
An analysis of the data showed that the June 2025 figure represents a N2.739 trillion decline from the N55.395 trillion recorded in May, marking a 4.95 per cent month-on-month decrease.
On a year-on-year basis, loans declined slightly by N9 billion, which is less than one per cent, compared to the N52.665 trillion recorded in June 2024.
The figures point to a cautious approach by banks in issuing loans, as the sector continues to grapple with recapitalisation compliance requirements set by the CBN, with March 30, 2026, as the deadline.
According to the quarterly data, loans reached N54.153 trillion in January 2025, up from N53.521 trillion in January 2024.
In February 2025, loans declined to N53.059 trillion from the N57.173 trillion recorded in February 2024.
The data further showed that in March 2025, bank loans increased to N54.136 trillion, compared to N49.614 trillion recorded in March 2024.
These fluctuations reflect the sector’s efforts to strike a balance between expanding credit facilities and maintaining regulatory compliance.
Commercial banks’ loans refer to credit facilities extended by banks to individuals and businesses for general financial needs, such as personal loans, business loans (working capital, expansion, equipment financing), mortgage loans (real estate purchases), and consumer credit (car loans, credit cards).
Merchant banks, on the other hand, specialise in financing large corporations, trade, and investment-related activities, such as corporate loans for large companies, trade finance (supporting import/export transactions), project finance (funding infrastructure or industrial projects), and advisory-linked financing (loans tied to mergers, acquisitions, or restructuring).
