Nigerian Banks’ Loan Portfolio Drops to ₦52.66 Trillion, 14-Month Low

Loans extended by commercial and merchant banks in Nigeria declined to N52.656 trillion in June 2025, marking the lowest level recorded in the last 14 months.

Data obtained from the Central Bank of Nigeria’s latest quarterly statistical bulletin shows that the last time total bank lending fell below this level was in April 2024, when loans stood at N51.467 trillion.

The June figure represents a N2.739 trillion drop from May 2025, when total loans stood at N55.395 trillion, translating to a 4.95 per cent month-on-month decline. On a year-on-year basis, lending dipped marginally by N9 billion, compared to N52.665 trillion recorded in June 2024.

The contraction reflects a more cautious lending posture by banks as the sector continues to adjust to recapitalisation requirements introduced by the apex bank. The Central Bank of Nigeria has set March 30, 2026, as the deadline for banks to comply with the revised minimum capital thresholds.

Loan Movement Trends in 2025

In January 2025, total loans rose to N54.153 trillion, compared to N53.521 trillion in the same month of the previous year. Lending declined in February 2025 to N53.059 trillion, down from N57.173 trillion in February 2024, before rising again in March 2025 to N54.136 trillion, compared with N49.614 trillion recorded a year earlier.

The fluctuations highlight the balancing act banks face between expanding credit and maintaining regulatory compliance.

Commercial banks typically provide loans to individuals and businesses for general financial needs, including personal loans, business financing, mortgages, and consumer credit. Merchant banks, on the other hand, focus on financing large corporations, trade activities, project finance, and advisory-linked transactions such as mergers and acquisitions.