Private sector credit climbed to N75.8 trillion in December 2025, up from N74.63 trillion in November, signalling a modest rebound in lending activity toward the end of the year, according to the latest monetary and credit statistics released by the Central Bank of Nigeria (CBN).
The month-on-month increase of about N1.17 trillion suggests a gradual improvement in lending momentum after several months of subdued credit growth. However, despite the rebound, overall credit levels remain below their highs from the previous year, highlighting the cautious and uneven nature of the recovery.
CBN data show that while lending improved in December, private sector credit is still below the N78.02 trillion recorded in December 2024, indicating that banks have yet to fully restore credit expansion to earlier levels. This reflects continued prudence among lenders amid lingering macroeconomic uncertainties and tight financial conditions for most of 2025.
Over the course of the year, private sector credit fluctuated within a wide range of N72 trillion to N78 trillion, underscoring volatility in financial conditions. Lending opened 2025 at N77.3 trillion in January, rose to a peak of N78.07 trillion in April, and then entered a sustained decline from May onward. The downturn was largely driven by restrictive monetary conditions, heightened risk aversion by banks, and broader economic headwinds.
The December uptick therefore represents a partial recovery rather than a full reversal of the year’s earlier contraction. Still, it points to renewed lending momentum following months of uneven performance and suggests that recent monetary policy adjustments may be starting to influence credit behaviour within the banking system.
Beyond private sector lending, the data also show a sharp rise in net domestic credit, which measures total lending to both the government and the private sector. Net domestic credit increased to N110.05 trillion in December 2025, from N100.98 trillion in November. On a year-on-year basis, it rose from N105.16 trillion in December 2024, reflecting sustained growth in overall domestic lending.
The expansion in net domestic credit indicates increased borrowing activity across the economy, driven largely by higher government financing needs alongside continued, though uneven, credit extension to businesses and households.
Recent monetary policy decisions provide additional context for the evolving credit environment. In September 2025, the Monetary Policy Committee (MPC) cut the Monetary Policy Rate (MPR) by 50 basis points to 27%, signalling a cautious shift toward easing. Although the MPC maintained the MPR at 27% in November, it adjusted the interest rate corridor to discourage banks from placing excess liquidity with the CBN, a move aimed at incentivising lending to the real economy.
Supporting this trend, Nigeria’s broad money supply (M3) rose to N124.4 trillion in December 2025, from N122.95 trillion in November, reflecting expansion in liquidity within the financial system. The increase was driven by movements in both net foreign assets (NFA) and net domestic assets (NDA) of the banking sector.
Overall, while the December rise in private sector credit points to improving conditions, the data suggest that lending activity remains in a fragile recovery phase, with banks still balancing growth opportunities against persistent economic risks.
Emmanuel Bassey is a Financial Expert that has worked in the Banking and Finance Industry for over 15+ years across different banks in Nigeria
