Nigeria’s banking sector continued to channel the largest share of its loans to the oil and gas industry in 2025, even as financing for manufacturers recorded a significant decline, according to data released by the Central Bank of Nigeria (CBN).
The latest figures show that Deposit Money Banks (DMBs) provided about N147.52 trillion in credit to the oil and gas sector during the year. Although this was slightly lower than the N148.82 trillion recorded in 2024, the sector remained the biggest recipient of bank loans in the country.
The data highlights the continued importance of the oil and gas industry to Nigeria’s economy and banking system. Despite ongoing efforts to diversify economic activities, lenders still maintain a strong focus on the energy sector because of its large contribution to government revenue and foreign exchange earnings.
While oil and gas remained dominant, the manufacturing sector experienced a sharp reduction in access to bank credit. Total loans to manufacturers fell to N88.82 trillion in 2025 from N111.39 trillion in 2024, representing a decline of more than 20 percent.
The drop in manufacturing credit raises concerns about the challenges facing industrial production in the country. Industry operators have continued to battle rising production costs, foreign exchange pressures, energy shortages, and weak consumer demand, factors that may have contributed to reduced lending activity.
On the other hand, the financial services sector recorded one of the strongest increases in bank credit. Loans to finance, insurance, and capital market businesses rose by 30.1 percent to N99.84 trillion in 2025, up from N76.73 trillion in the previous year.
The trade and commerce sector also attracted more financing during the year. Credit to businesses involved in trading activities increased by 4.4 percent, reaching N50.82 trillion compared to N48.66 trillion in 2024.
Agriculture continued to benefit from increased banking support as lenders expanded funding to the sector. Credit to agriculture climbed by 26.1 percent to N38.15 trillion from N30.25 trillion a year earlier. The increase reflects continued efforts to strengthen food production and reduce dependence on imports.
Government borrowing from commercial banks also rose during the period. Loans to the public sector increased by 7.2 percent to N36.19 trillion, while the information and communication sector received N23.32 trillion, representing a 4.6 percent increase.
In other sectors, transportation and storage attracted N18.69 trillion in loans, while construction financing declined slightly to N26.18 trillion. Real estate lending also weakened, falling by about 12 percent to N10.52 trillion.
Education was another sector that recorded lower access to credit. Bank lending to educational institutions dropped by 20 percent to N956.5 billion from N1.2 trillion recorded in 2024.
A notable development was the rapid growth in the “Others” category, which surged by 195 percent to N44.86 trillion. Analysts believe this may reflect changes in loan classification and a rise in miscellaneous lending activities.
Overall, total private sector credit increased modestly by 1.5 percent, rising to N700.31 trillion in 2025 from N689.98 trillion in the previous year. Analysts say the figures show that while banks remain heavily invested in oil and gas, lending patterns are gradually shifting toward sectors such as financial services, agriculture, and trade, even as manufacturing continues to face tighter financing conditions.
