Nigeria’s net domestic credit declined by 6.9 percent year-on-year to ₦109.43 trillion in January 2026, according to the latest data from the Central Bank of Nigeria (CBN).
The decline reflects reduced lending to both the government and private sector.
Net domestic credit represents the total credit extended by the banking system to both the public and private sectors. It is a key indicator of liquidity and lending activity within the economy.
The latest figures were contained in the CBN’s Money and Credit Statistics report for January 2026, which tracks changes in credit levels and money supply across the financial system.
Data from the CBN showed that net domestic credit dropped to ₦109.43 trillion in January 2026, compared with ₦110.06 trillion in December 2025.
On a year-on-year basis, the decline stood at 6.9 percent, indicating a reduction in overall lending within the financial system.
Further breakdown of the data showed that:
Credit to the private sector declined to ₦75.24 trillion from ₦75.83 trillion in December 2025
Credit to government fell slightly to ₦34.19 trillion from ₦34.22 trillion
These movements contributed to the overall contraction in net domestic credit during the period.
The decline in net domestic credit was also reflected in broader liquidity indicators.
Nigeria’s broad money supply (M3) fell to about ₦123.36 trillion in January 2026, down from ₦124.4 trillion in December 2025, indicating a slight contraction in system liquidity.
Other components of money supply also recorded declines during the period, including quasi money and currency outside banks, while demand deposits recorded a marginal increase.
The reduction in lending to both government and private sector reflects moderation in credit expansion within the financial system.
Private sector credit, which includes loans and advances to businesses and households, recorded a decline both on a monthly and annual basis.
Similarly, credit to government showed a marginal drop on a month-on-month basis, contributing to the overall movement in domestic credit.
The decline in net domestic credit indicates a slowdown in lending activities within the banking sector. It also reflects broader trends in liquidity conditions and credit allocation across the economy.
Net domestic credit remains a key indicator for assessing financial system activity, particularly in relation to economic growth and access to financing.
