Banks divert credit to services sector

•…as industry sector credit declines

By Elizabeth Adegbesan

Banks have moved the bulk of their credits to the services sector, leaving industry sector with a declining loan portfolio.

This is reflected in the Central Bank of Nigeria, CBN, third quarter 2025 (Q3’25) Economic report released yesterday.

Meanwhile the report also indicated that total credit to the economy declined by 1.93 per cent to N57.04 trillion, from N58.16 trillion at end-June 2025, reflecting tight monetary conditions.

The report shows that while the industrial sector got N22.14 trillion the services sector got N31.70 trillion.

Also the report stated: “Further analysis indicated that the services sector accounted for the largest share of credit at 55.58 per cent, followed by industry (38.81 percent) and agriculture (5.61 percent).”

Consumer credit fell by 27.17 per cent to N3.11 trillion in Q3’25, from N4.27 trillion in Q2’25.

Under consumer credit, personal loans declined by 6.93 percent to N2.15 trillion in Q3’25 from N2.31 trillion in Q2′ 25.

Likewise, retail loans outstanding dropped to N960 billion in Q3’25 from N1.96 trillion in Q2’25.

“In terms of share, personal loans maintained its dominance, accounting for 69.03 per cent, while retail loans constituted the balance”, CBN added.

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