Private sector credit in Nigeria increased to N75.8 trillion in December 2025, up from N74.63 trillion in November, reflecting a modest rebound in lending activities at the end of the year, according to the Central Bank of Nigeria’s latest monetary and credit statistics.
The month-on-month rise of about N1.17 trillion signals improving lending momentum, possibly influenced by recent monetary policy actions by the CBN.
Despite the gain, the December figure remains below the N78.02 trillion recorded in December 2024, indicating that lending has yet to fully recover to last year’s levels.
Throughout 2025, private sector credit fluctuated within a broad range of N72 trillion to N78 trillion, showing persistent volatility in financial conditions.
Lending opened the year at N77.3 trillion in January 2025, peaked at N78.07 trillion in April, and then declined from May due to tight financial conditions, heightened risk aversion by banks, and lingering macroeconomic uncertainties.
The December increase represents a partial recovery rather than a full reversal of the year’s earlier downturn, but it points to renewed momentum following months of uneven credit performance.
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Net domestic credit, which measures total lending to both the government and the private sector, rose sharply to N110.05 trillion in December 2025 from N100.98 trillion in November, reflecting sustained growth in domestic lending over the 12-month period.
The expansion in net domestic credit suggests increased borrowing activity across the economy, driven largely by higher government financing needs alongside continued, albeit uneven, credit extension to the private sector.
In September 2025, the Monetary Policy Committee reduced the Monetary Policy Rate by 50 basis points to 27 per cent, signalling a shift toward easing monetary conditions.
Although the MPC retained the MPR at 27 per cent in November, it adjusted the interest rate corridor to discourage banks from placing excess funds with the CBN.
Nairametrics earlier reported that Nigeria’s broad money supply (M3) surged to N124.4 trillion in December 2025, up from N122.95 trillion in November.
The increase in money supply is driven by shifts in both the net foreign assets and net domestic assets of the banking system.
