Nigerian banks’ credit to the private sector declined to N75.24 trillion in January 2026, down from N75.83 trillion recorded in December 2025.
This is according to the latest monetary and credit statistics released by the Central Bank of Nigeria (CBN).
Credit to the private sector comprises loans, non-equity securities, trade credits, and accounts receivable extended by banks and other financial institutions to private businesses and households.
A year-on-year comparison indicates that lending remains below the peak levels recorded in 2025, demonstrating continued volatility in credit conditions and a cautious lending environment at the start of the year.
What the data is saying
The latest CBN data show a marginal but notable decline in credit to the private sector in January 2026.
This suggests that aggregate lending conditions remain tight despite recent monetary policy adjustments.
- Private sector credit fell by N590 billion to N75.24 trillion in January 2026 from N75.83 trillion in December 2025.
- On a year-on-year basis, credit stood at N77.38 trillion in January 2025, indicating weaker lending compared to the same period last year.
- Credit peaked at N78.07 trillion in April 2025 before trending downward in subsequent months.
- The 12-month low was recorded in September 2025 at N72.53 trillion, highlighting fluctuations in credit conditions over the period.
The data point to a banking sector that remains measured in its lending activities, even as policymakers signal a gradual shift toward easing.
More Insights
The decline in private sector credit was accompanied by a broader slowdown in domestic credit expansion across the economy.
- Net Domestic Credit (NDC) fell to N109.43 trillion in January 2026 from N110.06 trillion in December 2025.
- Net credit to the government eased slightly to N34.19 trillion in January, compared to N34.22 trillion in the preceding month.
- Nigeria’s broad money supply (M3) declined to N123.36 trillion in January 2026 from N124.4 trillion in December 2025.
The contraction in money supply further underscores tightening liquidity conditions and may partly explain the dip in overall credit levels.
What you should know
The latest credit figures come amid recent policy adjustments by the CBN’s Monetary Policy Committee (MPC), aimed at balancing inflation control with economic growth.
- In September 2025, the MPC reduced the Monetary Policy Rate (MPR) by 50 basis points to 27 per cent, marking a shift toward cautious monetary easing after a prolonged tightening cycle.
- The Committee retained the MPR at 27 per cent in November 2025 but adjusted the interest rate corridor to discourage banks from parking excess liquidity at the central bank.
- The apex bank also retained the Cash Reserve Ratio at 45.0 per cent for commercial banks and 16.0 per cent for merchant banks.
- The Liquidity Ratio was maintained at 30.0 per cent.
- The Standing Facilities Corridor was fixed at +50/-450 basis points around the MPR.
The policy adjustment was intended to incentivise lending to the real sector rather than risk-free placements with the apex bank.
