Banks’ Private-Sector Lending Declines To N75trn In January

Credit to Nigeria’s private sector declined to N75.24 trillion in January 2026, down from N75.83 trillion recorded in December 2025, according to the latest monetary and credit statistics released by the Central Bank of Nigeria.

According to the data, credit to the private sector, which comprises loans, non-equity securities, trade credits and accounts receivable extended by banks and other financial institutions to private businesses and households, declined by about N590 billion within the review period.

A year-on-year comparison also shows that lending activity remains below the levels recorded in the corresponding period of last year. Credit stood at N77.38 trillion in January 2025, suggesting that lending conditions have weakened over the past 12 months.

Private sector credit had peaked at N78.07 trillion in April 2025 before trending downward in the following months. The lowest level within the period was recorded in September 2025 when private sector credit dropped to N72.53 trillion.

The CBN data showed that Net Domestic Credit declined to N109.43 trillion in January 2026 from N110.06 trillion in December 2025. Similarly, net credit to the government eased marginally to N34.19 trillion in January, compared with N34.22 trillion in the preceding month.

Nigeria’s broad money supply (M3) also recorded a slight contraction, falling to N123.36 trillion in January 2026 from N124.4 trillion in December 2025.

The latest credit figures come amid the CBN’s ongoing efforts by the Monetary Policy Committee (MPC) to strike a balance between controlling inflation and supporting economic growth.

At its last meeting in February, the MPC reduced the Monetary Policy Rate (MPR) by 50 basis points to 226.5 per cent, following a September cut that signalled a shift toward cautious monetary easing after an extended period of aggressive tightening aimed at curbing inflationary pressures.

The Cash Reserve Ratio was retained at 45 per cent for commercial banks and 16 per cent for merchant banks, while the Liquidity Ratio remained at 30 per cent.

The Standing Facilities Corridor was also maintained at plus 50 and minus 450 basis points around the Monetary Policy Rate.