Credit extended by Nigerian banks to the private sector declined to N75.24 trillion in January 2026, reflecting a slight slowdown in lending activity at the start of the year.
According to recent economic and credit data released by the Central Bank of Nigeria, private sector credit fell from N75.83 trillion in December 2025, a decline of about N590 billion.
Private sector credit includes receivables, trade credits, non-equity securities, and loans from banks and other financial institutions to consumers and companies.
A year-on-year analysis reveals that lending remains below early 2025 levels. Private sector credit in January 2025 stood at N77.38 trillion, indicating that lending requirements have softened relative to the previous year.
Apex bank data indicate that credit reached N78.07 trillion in April 2025, then gradually declined in subsequent months. September 2025 saw credit fall to N72.53 trillion, the lowest point over the 12-month span.
Despite signals from lawmakers supporting increased credit flows to companies, The News Chronicle gathered that the most recent data point to a prudent lending environment among Nigerian banks as financial institutions keep risk management in balance with economic uncertainties.
Other indicators also point to shrinking liquidity in the financial system. Broad money supply dropped to N123.36 trillion in January from N110.06 trillion in December, while net domestic credit decreased to N109.43 trillion from N124.4 trillion over the same period.
These changes follow the Monetary Policy Committee of the Central Bank of Nigeria lowering the Monetary Policy Rate by 50 basis points to 27 percent in September 2025 in an effort to promote lending while still maintaining pressure on inflation.
