Nigeria’s private sector credit recorded a measured decline of N1.07 trillion (1.41%) in January 2025, bringing the total credit to N74.88 trillion from N75.90 trillion in November 2024.

The Central Bank of Nigeria did not release data for December 2024, prompting the Nairametrics Research Team to estimate a N536 billion decline on a month-on-month basis, bringing December’s estimated credit to N75.42 trillion.

This moderation in credit aligns with the Central Bank of Nigeria’s (CBN) ongoing stringent monetary policies under Governor Yemi Cardoso, aimed at curbing inflation and stabilizing the economy.

Trend of declining private sector credit
According to the latest Money and Credit Statistics report by the CBN, credit to the private sector has exhibited fluctuations, reflecting both increases and declines over time.

In a year-on-year comparison, credit to the private sector stood at N76.47 trillion in January 2024, declining to N75.42 trillion (based on Nairametrics research estimate) in December 2024, representing a N1.05 trillion (1.38%) drop.

Additionally, private sector credit had risen significantly from N62.54 trillion in December 2023 to N76.48 trillion in January 2024—before the CBN, under Governor Cardoso, adopted a hawkish stance with the first of six consecutive hikes in the Monetary Policy Rate (MPR) in February 2024.

Despite a relatively modest 0.71% month-on-month decline in January 2025 (based on Nairametrics estimate), the impact of high borrowing costs on businesses is evident, reflecting the CBN’s sustained monetary tightening measures.