Credit to Private Sector Hits N84.55tn as Government Credit Falls N7.7tn
Nume Ekeghe Credit to the private sector rose for the third consecutive month in August, climbing to N84.55 trillion, as lending to government fell for the third straight month to
Credit allocated to the private sector surged in August, reaching an impressive N84.55 trillion, following a three-month trend of growth. This surge was accompanied by a decline in government credit, which dropped to N32.70 trillion, marking the third consecutive monthly decrease. The Central Bank of Nigeria's latest data revealed that private-sector credit expanded by N1.13 trillion, or 1.35%, from N83.43 trillion in July, building on a previous N171.8 billion rise from N83.26 trillion in June.
Since May, when private-sector credit stood at N81.04 trillion, it has grown by N3.51 trillion, or 4.33%, indicating a robust recovery from earlier contraction. However, government credit has been trending in the opposite direction, contracting by N7.68 trillion, or 19.02%, over the same period. Despite this decline, government credit remains 42.47% higher than it was in August 2025.
The disparity between private-sector and government credit widened to N51.85 trillion in August, up from N40.66 trillion in May. Currency in circulation also rebounded modestly in August, increasing by N53.6 billion, or 1%, to N5.44 trillion, following declines from N5.69 trillion in May to N5.38 trillion in July. While currency in circulation remains N294.8 billion, or 5.1%, below the January level, it has risen by N514 billion, or 10.44%, year-on-year.
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