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.
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.
These fluctuations highlight the sector’s balancing act between expanding credit facilities and maintaining regulatory compliance.
Commercial and merchant banks’ loans refer to credit facilities extended by two categories of banks:
Merchant banks specialize in financing large corporations, trade, and investment-related activities.
Naijaonpoint 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.