Nigerian Banks' Private Sector Credit Drops by N1.3 Trillion in One Year Amid Tight Monetary Policies

The latest data from the Central Bank of Nigeria (CBN) reveals a significant drop of N1.3 trillion in banks' credit to the private sector within a year, reaching N75.96 trillion in November 2025. This decline is attributed to the aggressive tightening cycle led by CBN Governor Olayemi Cardoso, who implemented multiple interest rate hikes in 2024.

The fluctuating credit levels throughout the year indicate a delicate balance between monetary restraint, inflation, and interest rates. Analysts predict continued volatility in credit growth, with hopes for a gradual policy easing to revive private sector credit and support economic recovery.