Private Sector Credit Reached N75.83trn in December as Government Borrowing Jumped to N34.22trn 

Nume Ekeghe

Credit to the private sector closed 2025 on a mildly positive note, rising to N75.83 trillion in December, as credit to government surged to N34.22 trillion. 

Latest money and credit statistics released by the Central Bank of Nigeria (CBN) showed that credit to the private sector increased by 1.6 per cent month-on-month in December, up from N74.63 trillion in November, marking one of the stronger monthly expansions recorded in the second half of the year.

By contrast, credit to government jumped by a steep 29.9 per cent in December, rising from N26.35 trillion in November to N34.22 trillion, the largest monthly increase recorded within the year under review.

A review of the monthly movement in private sector credit over the past year showed an uneven trend, reflecting the impact of tight monetary conditions, elevated lending rates and cautious risk appetite by deposit money banks.

In January 2025, credit to the private sector stood at N77.38 trillion, but declined by 1.4 per cent in February to N76.26 trillion, followed by a further 0.4 per cent contraction in March to N75.98 trillion.

The trend reversed in April, when private sector credit rose by 2.7 per cent to N78.07 trillion, before flattening in May with a marginal 0.1 per cent decline. This was followed by a sharper 2.4 per cent contraction in June, as credit fell to N76.13 trillion.

A modest recovery emerged in July, with a 0.8 per cent increase, but this was short-lived as credit declined again by 1.1 per cent in August and a pronounced 4.4 per cent in September, bringing private sector credit down to N72.53 trillion, its weakest level in the second half of the year.

Improvement returned in the final quarter, with credit expanding by 2.6 per cent in October, 0.3 per cent in November, and 1.6 per cent in December, closing the year at N75.83 trillion.

Credit to government displayed significantly higher volatility over the same period, with sharp swings reflecting fiscal financing needs and timing of borrowing.

From N25.03 trillion in January, government credit rose by 8.3 per cent in February to N27.11 trillion, before declining by 9.3 per cent in March. The downward trend persisted in April (-2.7 per cent), May (-4.0 per cent) and June (-5.8 per cent), as credit fell to N21.66 trillion.

However, borrowing resumed aggressively in the second half of the year. Credit to government jumped by 9.4 per cent in July, dipped by 3.1 per cent in August, and then rose steadily by 5.3 per cent in September, 2.6 per cent in October and 6.3 per cent in November.

The most significant movement came in December, when government credit surged by 29.9 per cent month-on-month, pushing the stock to N34.22 trillion.