MON JUNE 02 2025-theGBJournal| Credit to the Private Sector (CPS) rose by 6.8% y/y to N77.91 trillion in April (April 2024: N72.92 trillion), according to data from the Central Bank of Nigeria (CBN).
The data reflects considerable slow down in pace of growth compared to the previous year (2024 average: 48.1% y/y), primarily due to the diminished impact of currency depreciation on banks’ foreign-denominated assets, following the recent stability of the naira.
At the same time, credit to the government rose by 17.9% y/y to N23.55 trillion (April 2024: N19.96 trillion), indicating increased government borrowings from domestic banks for deficit financing.
Overall, broad money supply (M3) grew by 22.8% y/y to NGN119.11 trillion, following increases across quasi (+23.6% y/y) and narrow (+21.3% y/y) money supply.
On a month-on-month basis, the CPS increased moderately by 2.1% to NGN77.91 trillion in April (March: +2bps m/m to NGN76.27 trillion, possibly reflecting banks’ efforts to expand risk assets.
”Looking ahead, we expect CPS growth to remain subdued in the near term, reflecting the impact of the current tight monetary policy stance, says Cordros Rsearch.
Cordros adds that a potential shift toward monetary easing in the latter part of the year could offer some support for a gradual rebound in CPS growth over the medium term.
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