Banks Commit N147.52trn Credit To Oil Sector As Manufacturing Lending Slumps

Deposit Money Banks (DMBs) in Nigeria continued to prioritise the oil and gas sector in 2025, even as lending to manufacturing contracted sharply, according to data from the Central Bank of Nigeria (CBN).

The CBN’s statistical bulletin showed that cumulative bank credit to the oil and gas sector stood at about N147.52 trillion in 2025, maintaining its position as the largest destination of bank lending in the economy. However, the figure reflected a marginal decline of 0.9 per cent compared to N148.82 trillion recorded in 2024.

In contrast, the manufacturing sector, which ranked second in terms of credit allocation, experienced a significant downturn. Total lending to manufacturers dropped to N88.82 trillion in 2025 from N111.39 trillion in the previous year, representing a 20.3 per cent decline.

The data highlights a widening divergence in sectoral credit flows, with banks sustaining heavy exposure to hydrocarbons while scaling back financing to industrial production.

Beyond oil and gas and manufacturing, the financial services sector recorded one of the strongest gains in credit allocation. Lending to the finance, insurance and capital market segment rose by 30.1 per cent to N99.84 trillion in 2025, up from N76.73 trillion in 2024.

The trade and general commerce sector also saw moderate growth, attracting N50.82 trillion in 2025 compared to N48.66 trillion in the previous year, a 4.4 per cent increase.

Agriculture continued its gradual expansion in bank financing, with credit rising by 26.1 per cent to N38.15 trillion from N30.25 trillion in 2024, reflecting ongoing lending support for economic diversification efforts.

Government borrowing from deposit money banks also increased, rising 7.2 per cent to N36.19 trillion during the review period. Similarly, the information and communication sector recorded a 4.6 per cent increase to N23.32 trillion.

In the real economy, transportation and storage received N18.69 trillion in 2025, up from N17.21 trillion in 2024, while construction declined slightly to N26.18 trillion from N27.22 trillion.

The real estate sector also recorded a contraction, with credit falling by about 12 per cent to N10.52 trillion, while education lending dropped 20 per cent to N956.5 billion from N1.2 trillion in 2024.

A notable outlier was the “Others” category, which surged by 195 per cent to N44.86 trillion from N15.21 trillion, reflecting shifting classifications and increased miscellaneous credit exposure.

Overall, total private sector credit from deposit money banks rose modestly by 1.5 per cent to N700.31 trillion in 2025, compared to N689.98 trillion in 2024.

Analysts note that while banks remain heavily exposed to the oil and gas sector, recent credit patterns indicate a gradual rebalancing toward financial services, agriculture, and trade, even as manufacturing continues to face tightening financing conditions.