Nigerian Private Sector Credit Hits N75.83 Trillion in December Amid Government Borrowing Surge

In December, private sector credit in Nigeria hit N75.83 trillion, while government borrowing escalated to N34.22 trillion. The Central Bank of Nigeria's latest monetary credit statistics revealed a 1.6% month-on-month increase in private sector credit, reaching N74.63 trillion in November.

In contrast, government credit experienced a steep 29.9% surge from N26.35 trillion in November to N34.22 trillion in December, marking the largest monthly increase within the year. The fluctuating trend in private sector credit over the past year reflected the impact of tight monetary conditions, elevated lending rates, cautious risk appetite, and deposit money in banks.

The uneven movement in private sector credit showed a modest recovery in July but declined again in subsequent months before improving in the final quarter of the year.