Nigeria’s net domestic credit saw a sharp decline, falling to N99.41 trillion in January 2025, marking a contraction of N16.17 trillion from the N115.58 trillion recorded in November 2024.
According to the latest Money and Credit Statistics report released by the Central Bank of Nigeria (CBN), domestic lending has experienced notable fluctuations over the past year.
For context, net domestic credit stood at:
- N99.99 trillion in January 2024
- N85.35 trillion in November 2023
The significant decline suggests a contraction in domestic credit issuance, likely driven by multiple factors, including:
- Monetary tightening measures by the CBN to combat inflation and stabilize the naira
- Reduced government borrowing amid fiscal adjustments
- Private sector caution due to lingering economic uncertainty
The CBN’s decision to maintain the Monetary Policy Rate (MPR) at 27.50% during its 299th Monetary Policy Committee (MPC) meeting may have further influenced credit activity, discouraging borrowing due to higher interest costs.
Notably, the December 2024 figures are absent from the report — data that could provide critical insights into credit trends during the peak holiday spending period.
As Nigeria navigates these economic shifts, the trajectory of domestic credit will remain a key indicator of financial market stability and economic resilience.
