Nigeria’s Net Domestic Credit (NDC) has dropped by 6.9% year-on-year to N109.4 trillion in January 2026, according to the Central Bank of Nigeria’s latest money and credit report. The NDC represents the total value of bank credit to both the private and public sectors.
In January 2026, bank credit to the government stood at N34.2 trillion, while credit to the private sector was N75.2 trillion. Comparatively, in January 2025, bank credit to the government was N25.03 trillion, and credit to the private sector was N77.4 trillion.
Analysts attribute the decline to monetary policy easing as inflation continues to drop marginally. Dr. Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise, commended the CBN’s decision to reduce the Monetary Policy Rate (MPR), emphasizing the need for complementary fiscal reforms.
However, David Adonri, an analyst at High Cap Securities Limited, expressed concerns about the persistent contraction in credit, citing its potential impact on business funding amidst inflation and weak consumer demand
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