Nigeria’s net domestic credit declined by 6.9 per cent to N109 trillion, reflecting a contraction in lending within the economy, according to recent data.
The drop highlights reduced credit to key sectors, including the government and private sector, amid tightening financial conditions and cautious lending by banks. Analysts say the development may signal efforts to manage liquidity and curb inflationary pressures.
The figures suggest that while financial institutions remain active, overall credit expansion has slowed, potentially impacting business activities and economic growth.
Economists note that sustaining credit flow to productive sectors will be critical to supporting recovery and maintaining momentum in the broader economy.
