SAT NOV 01 2025-theGBJournal| Credit to the Private Sector (CPS) declined by 4.4% y/y to N72.53 trillion in September 2025 (September 2024: N75.83 trillion), despite the MPC’s pivot to monetary easing at its September meeting, according to latest data from the Central Bank of Nigeria (CBN).
We believe the decline reflects the lagged impact of the CBN’s prolonged tight monetary policy stance prior to the easing cycle.
Similarly, credit to the government fell sharply by 38.8% y/y to NGN24.16 trillion (September 2024: N39.47 trillion), indicating reduced government borrowing from domestic banks for deficit financing.
Overall, broad money supply (M3) rose slowly by 7.7% y/y to N117.78 trillion, reflecting increases across narrow (+9.1% y/y) and quasi (+7.0% y/y) money supply.
On a month-on-month basis, the CPS fell by 4.4% (August: -0.3% m/m to N75.88 trillion). Looking ahead, we expect the MPC’s recent pivot toward monetary easing to support a gradual recovery in credit to the private sector (CPS) over the near to medium term.
Softer financing conditions, coupled with improved liquidity in the banking system, should encourage lending activity and ease credit constraints on businesses and households.
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