Nume Ekeghe

Credit to Nigeria’s private sector stood at N72.53 trillion in September 2025, while total loans to the government increased to N24.16 trillion.

The latest Money and Credit Statistics report released by the Central Bank of Nigeria (CBN) showed that the structure of domestic credit is evolving in response to recent rate cuts, fiscal consolidation efforts, and changing liquidity conditions across the banking system. 

Private sector credit began the year at N77.38 trillion in January, before declining modestly to N76.26 trillion in February and N75.98 trillion in March.

It rebounded strongly in April to N78.07 trillion, marking the highest level recorded this year, before easing slightly to N77.97 trillion in May.

The moderation continued into June, when total private-sector loans dropped to N76.13 trillion, followed by a mild recovery to N75.88 trillion in August.

By September, total credit stood at N72.53 trillion, as some banks slowed new disbursements pending clearer signals from the monetary policy environment.

Analysts attribute the September decline partly to portfolio adjustments, lower credit demand from corporates, and risk rebalancing by banks after the mid-year rate review.

Conversely, credit to the government has maintained a steady upward trend since mid-year. 

Data from the CBN showed that government borrowing opened the year at N25.03 trillion in January, rose sharply to N27.11 trillion in February, before easing slightly to N24.59 trillion in March and N23.93 trillion in April.

Borrowing moderated further to N22.99 trillion in May, dipped to N21.66 trillion in June, and then climbed again to N22.95 trillion in August before settling at N24.16 trillion in September.

This represents a 5.26 per cent month-on-month increase and highlights renewed fiscal activity heading into the final quarter of the year.

On a year-on-year basis, however, government borrowing has declined by 38.8 per cent, from N39.47 trillion in September 2024, indicating reduced dependence on central bank funding and a gradual move toward fiscal discipline.