Nigeria’s private sector credit rose sharply to N74.41 trillion in October, up from N72.53 trillion in September, marking the strongest monthly increase so far this year, the Central Bank of Nigeria said in its latest money and credit statistics.
The N1.88 trillion jump followed the Monetary Policy Committee’s first rate cut in five years, when policymakers lowered the benchmark interest rate by 50 basis points to 27 percent at their September meeting as inflation eased and foreign exchange conditions improved.
The MPC held the rate at 27 percent in November but adjusted the corridor around the benchmark to discourage banks from keeping excess liquidity with the central bank.
Year-on-year, private sector credit edged up only slightly from N74.07 trillion in October 2024, underscoring that the sharp movement in October was largely a short-term rebound rather than a broad annual expansion.
Credit flows through 2025 have been uneven. Private credit opened the year at N77.38 trillion, slipped through March, rebounded above N78 trillion in April, and then retreated again until a steep September drop of N3.36 trillion paved the way for October’s recovery.
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In October, the private sector accounted for roughly 75 percent of total domestic credit, with government borrowing at N24.79 trillion. In contrast, a year earlier the private sector made up about 65 percent of domestic credit, reflecting a significant fall in government borrowing over the period.
The CBN figures highlight a volatile credit environment in 2025, with October’s surge standing out as the strongest positive movement of the year.
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