Private Sector Credit Up 4.02% YoY to N76.14trn as Broad Money Supply Expands

Nume Ekeghe

Credit to the private sector increased by 4.02 per cent year-on-year to N76.14 trillion in June 2025, up from N73.19 trillion recorded in June 2024, the latest Central Bank of Nigeria (CBN) Money and Credit Statistics show.

The rise reflects a net expansion of N2.94 trillion within the twelve-month period, underscoring the private sector’s growing access to credit amid a volatile monetary environment.

Monthly data from June 2024 to June 2025 reveal alternating periods of expansion and contraction. Following the June 2024 base of N73.19 trillion, credit rose sharply to N75.51 trillion in July and dipped slightly to N74.73 trillion in August.

September 2024 witnessed a rebound to N75.83 trillion, only for the series to contract again in October to N74.07 trillion. November saw a resurgence to N75.96 trillion, followed by a peak in December of N78.02 trillion. Entering 2025, lending activity moderated, with balances at N77.38 trillion in January and N76.26 trillion in February. Credit fell further to N75.98 trillion in March, before strengthening again to N78.08 trillion in April. The series softened in May to N77.83 trillion before closing June 2025 at N76.14 trillion.

Other monetary aggregates recorded even more pronounced shifts over the year. Broad money supply (M3) climbed from N101.46 trillion in June 2024 to N117.50 trillion in June 2025, representing a robust 15.8 per cent increase. The broad money trajectory suggests persistent liquidity growth in the system, reflecting both credit creation and expansionary flows.

Currency dynamics also highlight stronger cash demand. Currency in circulation rose from N4.05 trillion in June 2024 to N5.01 trillion in June 2025, marking a 23.68 per cent increase. Within this component, currency outside banks moved from N3.78 trillion to N4.49 trillion, up 18.57 per cent, indicating that nearly 90 per cent of circulating notes remain held by the public rather than retained within banking vaults.

In contrast to private sector credit growth, net credit to the government posted a marginal year-on-year decline. The figure stood at N23.93 trillion in June 2024 but slipped to N23.73 trillion in June 2025, a contraction of 0.86 per cent. This moderation suggests a relative shift in lending priorities from government financing toward private sector support, consistent with broader diversification targets.