Why Nigerian Banks Cut Private Sector Lending By ₦5.45tn

Nigerian banks reduced lending to key sectors of the economy by ₦5.45 trillion in the first quarter of 2025, reflecting a more cautious approach to credit amid rising risks and tighter regulatory conditions. Central Bank of Nigeria data shows that sectors including oil and gas, information and communication technology, manufacturing and other productive industries recorded major declines in bank financing.

Investment Banking Associate at Parthian Partners, Nosakhare Eghe-abe, joins the conversation.


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