Nigeria’s Net Domestic Credit (NDC) declined by 6.9 per cent year-on-year in January 2026 to N109.4 trillion, compared to N102.4 trillion in the same period of 2025, according to the latest money and credit report by the Central Bank of Nigeria.
The NDC is the total value of Bank credit to both the private and public sectors.
The decline, according to analysts, is a reflection of monetary policy easing as inflation continued to drop marginally.
Details of the report reveal that in January 2026, Bank credit to government stood at N34.2 trillion while credit to private sector stood at N75.2 trillion.
Similarly, in the corresponding period of 2025, the Bank credit to government recorded N25.03 trillion, while credit to private sector stood at N77.4 trillion.
On quarterly trend, the NDC in the first quarter 2025, Q1’25 declined by 4.4% to N100.6 trillion from N105.2 trillion in December 2024. In Q2’25, the NDC further declined by 2.8% to N97.8 trillion. In Q3’25, it declined by 1.1 % to N96.7 trillion.
However, in Q4’25 the NDC went up by 2.6% to N99.2 trillion.
Commenting on the rise in the NDC YoY, Dr Muda Yusuf, CEO, Centre for the Promotion of Private Enterprise, CPPE commended the CBN’s Monetary Policy Committee, MPC, decision reducing the Monetary Policy Rate, MPR , but emphasized the need for complementary fiscal reforms.
He described the move as “a welcome and timely intervention,” adding that the lower MPR combined with a reduced Cash Reserve Requirement (CRR) should expand banks’ capacity to create credit and ease lending rates.
“This will support business expansion, stimulates output growth, and create jobs”, Yusuf said.
However, he cautioned that monetary easing alone is not enough, stressing that fiscal authorities must prioritise infrastructure to lower production costs, reinforce the regulatory framework, and maintain fiscal discipline to safeguard macroeconomic stability and boost investor confidence.
Commenting as well, David Adonri, analyst and Executive Vice Chairman at High Cap Securities Limited, said: “The persistent contraction in credit raises concerns about business funding at a time when inflation and weak consumer demand are already squeezing the economy.”
