Nigeria’s Net Domestic Credit Falls By 12.8%, Now At ₦98.97 Trillion

Nigeria’s Net Domestic Credit (NDC) declined by 12.8% year-on-year in August 2025, standing at ₦98.97 trillion, according to the latest money and credit statistics from the Central Bank of Nigeria (CBN).

In August 2025, bank credit to the government was ₦23.133 trillion, while credit to the private sector reached ₦75.843 trillion, bringing total NDC to ₦98.97 trillion. In comparison, during the same period in 2024, credit to the government was ₦39.391 trillion, and private sector credit was ₦74.072 trillion, resulting in a total NDC of ₦113.463 trillion.

On a monthly trend, NDC was ₦102.406 trillion in January 2025 and grew slightly by 0.9% to ₦103.369 trillion in February. However, in March, it dropped sharply by 34% to ₦68.177 trillion.

In the second quarter of 2025, NDC rose by 49.6% to ₦102.002 trillion in April, declined by 1.03% to ₦100.955 trillion in May, and further dropped by 3.13% to ₦97.787 trillion in June. Although data for July was unavailable, August recorded a slight increase of 1.2%.

Dr. Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise (CPPE), welcomed the Monetary Policy Committee’s (MPC) decision to lower the Monetary Policy Rate (MPR), describing it as a “timely and necessary intervention.” He noted that the combination of a reduced MPR and lower Cash Reserve Ratio (CRR) would enhance banks’ lending capacity, ease borrowing costs, support business growth, and stimulate job creation.

However, he cautioned that monetary policy alone would not suffice, stressing that “fiscal authorities must prioritise infrastructure development, strengthen regulatory institutions, and maintain fiscal discipline to promote macroeconomic stability and investor confidence.”

Also commenting, David Adonri, Executive Vice Chairman at HighCap Securities Limited, warned that the persistent decline in credit could hinder business financing amid inflationary pressures, foreign exchange challenges, and weak consumer demand.

He added that Nigeria’s move aligns with a broader trend across Africa, as several central banks begin to ease monetary policy in response to moderating inflation. Recently, Ghana cut its policy rate by 350 basis points to 21.5%, while Kenya lowered its benchmark rate to 9.5% in mid-August. Despite this, Nigeria’s MPR remains among the highest on the continent, reflecting ongoing inflationary concerns.