Loans provided by commercial and merchant banks in Nigeria dropped to N52.656 trillion in June 2025, marking the lowest level in 14 months.
This is according to the Central Bank of Nigeria’s (CBN) latest quarterly statistical bulletin.
The last time the figure fell below this threshold was in April 2024, when it stood at N51.467 trillion.
What the data is saying
The CBN data revealed that the June 2025 figure represents a N2.739 trillion decline from May’s N55.395 trillion, translating to a 4.95% month-on-month decrease.
On a year-on-year basis, loans dipped slightly by N9 billion, less than 1%, compared to N52.665 trillion in June 2024.
The figures reflect a cautious approach by banks in issuing loans, as the sector continues to grapple with recapitalisation compliance requirements set by the apex bank.
The CBN had set March 30, 2026, as the deadline date for banks to meet the revised capital requirement.
Quarterly loan movements in 2025
- January 2025: Loans reached N54.153 trillion, up from N53.521 trillion in January 2024.
- February 2025: Loans dropped to N53.059 trillion, down from N57.173 trillion in February 2024.
- March 2025: Loans climbed to N54.136 trillion, compared to N49.614 trillion in March 2024.
These fluctuations highlight the sector’s balancing act between expanding credit facilities and maintaining regulatory compliance.
What commercial and merchant banks’ loans represent
Commercial and merchant banks’ loans refer to credit facilities extended by two categories of banks:
- Commercial banks provide loans to individuals and businesses for general financial needs.
- Personal loans (for individuals)
- Business loans (working capital, expansion, equipment financing)
- Mortgage loans (real estate purchases)
- Consumer credit (car loans, credit cards)
Merchant banks
Merchant banks specialize in financing large corporations, trade, and investment-related activities.
- Corporate loans for large companies
- Trade finance (supporting import/export transactions)
- Project finance (funding infrastructure or industrial projects)
- Advisory-linked financing (loans tied to mergers, acquisitions, or restructuring)
What you should know
- Nairametrics had reported that Nigeria’s banking sector saw a fresh rise in bad loans in 2025 after the CBN withdrew the regulatory forbearance that allowed banks to restructure pandemic-hit facilities without classifying them as non-performing.
- Data from the CBN’s latest macroeconomic outlook showed that the banking industry’s Non-Performing Loans ratio climbed to an estimated 7%, pushing the sector above the prudential ceiling of 5%.
- The regulator explained that the increase followed the crystallisation of previously restructured loans that could no longer qualify for special consideration once the relief window expired.