Credit extended by Nigerian banks to the private sector fell to N75.24 trillion in January 2026, down from N75.83 trillion in December 2025.
The decline is highlighted in the latest monetary and credit data published by the Central Bank of Nigeria.
Private sector credit includes loans, trade credits, non-equity securities, and accounts receivable provided by banks and other financial institutions to households and businesses.
A year-on-year comparison shows that lending remains below the peak levels of 2025, reflecting ongoing volatility in credit conditions and a cautious approach by banks at the start of 2026.
The latest CBN data indicate a slight but noteworthy decline in credit to the private sector in January 2026.
Aggregate lending conditions in Nigeria remain tight despite recent monetary policy adjustments.
Credit to the private sector declined by N590 billion to N75.24 trillion in January 2026, down from N75.83 trillion in December 2025.
On a year-on-year basis, lending was weaker, standing at N77.38 trillion in January 2025. Credit had peaked at N78.07 trillion in April 2025 before gradually trending downward in the following months.
The data suggest a banking sector that remains cautious in its lending, even as policymakers signal a gradual shift toward monetary easing.
The decline in private sector credit in January 2026 coincided with a broader slowdown in domestic credit growth across the economy.
Net Domestic Credit (NDC) in Nigeria fell to N109.43 trillion in January 2026, down from N110.06 trillion in December 2025. Net credit to the government eased slightly to N34.19 trillion, compared with N34.22 trillion the previous month.
Meanwhile, broad money supply declined to N123.36 trillion in January 2026 from N124.4 trillion in December 2025.
The contraction in money supply highlights tightening liquidity conditions, which may have contributed to the decline in overall credit levels.
The latest credit figures come as the CBN’s Monetary Policy Committee implements policy adjustments designed to balance inflation control with support for economic growth.
