Credit to Private Sector Falls 15.3% to N33.9tn

Credit to the private sector fell by 15.3 per cent month-on-month (MoM) to N33.9 trillion in July 2026, down from N40.03 trillion recorded in June.

The Central Bank of Nigeria (CBN) disclosed this in its Money and Credit Statistics Data for the period under review.

The data also showed a slight decline in credit to government, which fell by 0.18 per cent MoM to N83.4 trillion in July from N83.25 trillion in June. As a result, net domestic credit stood at N117.4 trillion, representing a 4.3 per cent MoM decline from N123.9 trillion in June.

Despite the fall in credit, money supply in Nigeria increased during the month. The CBN reported that broad money supply (M²) rose by 4.2 per cent MoM to N138.7 trillion in July from N133.24 trillion in June.

The rise came despite weaker growth across several components of M². Narrow money declined by 2.23 per cent to N43.7 trillion from N44.7 trillion.

Similarly, currency outside banks (CoB) fell by 2.08 per cent to N4.8 trillion from N4.9 trillion. Demand deposits also dropped by 2.26 per cent MoM to N38.9 trillion, compared with N39.8 trillion in June.

However, quasi money moved in the opposite direction. It increased by 7.4 per cent to N95.09 trillion in July from N88.5 trillion in June.

The figures highlight a mixed movement in Nigeria’s monetary system, with credit to the private sector falling sharply while broad money and quasi money continued to expand.

What could the sharp fall in private-sector credit mean for businesses and economic activity?