Private Sector Credit Rises to N75.8 Trillion in December 2025 as CBN Policies Begin to Bite

Private sector credit in Nigeria climbed to N75.8 trillion in December 2025, up from N74.63 trillion in November, according to the latest monetary and credit statistics released by the Central Bank of Nigeria (CBN). The increase points to a modest rebound in lending activity as the year came to a close, following several months of subdued credit growth.

The month-on-month rise of N1.17 trillion suggests that recent monetary policy adjustments by the CBN may be slowly improving lending conditions within the banking system. Analysts say the uptick reflects renewed confidence among lenders after prolonged caution earlier in the year.

However, despite the improvement, credit levels remain below the N78.02 trillion recorded in December 2024, indicating that lending has not fully recovered to last year’s peak. Throughout 2025, private sector credit fluctuated between N72 trillion and N78 trillion, highlighting persistent volatility driven by tight financial conditions and macroeconomic uncertainty.

Lending activity opened the year at N77.3 trillion in January 2025 and peaked at N78.07 trillion in April before entering a steady decline from May. The downturn was largely attributed to elevated interest rates, increased risk aversion by banks, and broader economic pressures that constrained borrowing.

Meanwhile, net domestic credit—which includes lending to both the government and the private sector—rose sharply to N110.05 trillion in December 2025, up from N100.98 trillion in November and N105.16 trillion in December 2024. The sustained growth reflects increased government borrowing and gradual, though uneven, credit expansion to the private sector as monetary conditions begin to ease.

source: nairametrics