Nigeria’s private sector ended 2025 with a slight shift in credit conditions.
After months of pressure, lending picked up in December.
Private Sector Credit Rebounds
Specifically, private sector credit rose to ₦75.8 trillion from ₦74.63 trillion in November.
The Central Bank of Nigeria (CBN) released the data.
Moreover, the ₦1.17 trillion monthly increase shows banks eased lending restraint at year-end.
Previously, tight liquidity and rising risk aversion had weakened credit growth.
However, credit levels still trail December 2024’s ₦78.02 trillion.
As a result, lending has not yet returned to last year’s highs.
Volatile Credit Cycle
Throughout 2025, private sector credit moved between ₦72 trillion and ₦78 trillion.
Overall, unstable financial and macroeconomic conditions drove this volatility.
At the start of the year, credit stood at ₦77.3 trillion in January.
It then climbed to ₦78.07 trillion in April before declining from May.
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During this period, banks adopted a cautious stance amid rising uncertainty.
Therefore, the December increase signals stabilisation rather than full recovery.
Policy And Liquidity Shift
Meanwhile, net domestic credit surged to ₦110.05 trillion in December.
In comparison, it stood at ₦100.98 trillion in November.
Additionally, it surpassed the ₦105.16 trillion recorded in December 2024.
This growth largely reflects higher government borrowing and uneven private sector recovery.
During the year, monetary policy shifts shaped lending conditions.
In September, the MPC cut the policy rate by 50 basis points.
Later, the committee held the rate at 27% in November.
However, it adjusted the interest rate corridor to curb excess bank deposits.
Toward year-end, liquidity conditions improved.
Broad money supply climbed to ₦124.4 trillion in December.
By contrast, it measured ₦122.95 trillion in November.
Banks drove the increase through changes in foreign and domestic assets.
Overall, the data suggests credit conditions are bottoming out.
Consequently, lending activity shows early signs of renewed traction.
