Private sector credit rose to N74.63 trillion in November 2025, signalling an early rebound in lending activity following the Central Bank of Nigeria’s (CBN) September policy rate cut.
This is according to the latest data released by the CBN, which shows a marginal increase from N74.41 trillion recorded in October.
The data suggest that while tight monetary conditions constrained lending for most of the year, easing policy signals are beginning to stabilise credit flows to businesses and households.
CBN figures show that credit to Nigeria’s private sector increased month-on-month by N220 billion to N74.63 trillion in November 2025.
However, on a year-on-year basis, private sector credit declined from N75.96 trillion in November 2024, demonstrating the lingering effects of restrictive monetary policy for much of 2025.
The monthly uptick followed the Monetary Policy Committee’s (MPC) decision in September to cut the Monetary Policy Rate (MPR) by 50 basis points to 27 per cent.
In November, the MPC retained the MPR at 27 per cent but adjusted the interest rate corridor, a move aimed at discouraging banks from parking excess liquidity with the CBN and encouraging lending to the real economy.
The November rebound marks a turning point after a prolonged decline in private sector credit earlier in the year.
CBN data show that credit fell from N77.38 trillion in January to a low of N72.53 trillion in September, reflecting the impact of elevated interest rates, tighter liquidity conditions, and cautious bank lending.
Following the September rate cut, private sector credit recovered to N74.41 trillion in October and rose further in November, suggesting improved confidence among lenders and borrowers.
Meanwhile, total domestic credit — which includes lending to both the government and the private sector — rose from N99.20 trillion in October to N100.98 trillion in November.
Despite this monthly increase, total domestic credit remained well below the N115.58 trillion recorded in November 2024, highlighting the broader slowdown in credit creation over the past year.
The November data point to early signs that private sector lending is stabilising after months of contraction, aided by the CBN’s shift toward cautious policy easing.
While the recovery remains modest on an annual basis, the improving monthly trend suggests that credit conditions could gradually improve if inflation continues to ease and policy rates remain supportive.
However, the sustainability of the rebound will depend on future MPC decisions, the balance between liquidity management and inflation control, and the pace of economic activity as Nigeria heads into 2026.