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

Private sector credit in Nigeria fell by 15.3 per cent month-on-month to N33.9 trillion in July 2026, from N40.03 trillion recorded in June.

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

The latest figures show a significant decline in lending to businesses and other private-sector participants, even as the country’s overall money supply increased during the month.

Credit to the government also recorded a slight decline. The data showed that government credit fell by 0.18 per cent month-on-month, from N83.25 trillion in June to N83.4 trillion in July 2026.

The combined movement resulted in net domestic credit of N117.4 trillion in July. This represented a 4.3 per cent month-on-month decline from N123.9 trillion recorded in June.

Despite the fall in domestic credit, Nigeria’s broad money supply increased during the same period. According to the CBN, broad money supply (M²) rose by 4.2 per cent month-on-month to N138.7 trillion in July, compared with N133.24 trillion in June.

The increase came despite declines across several components of the money supply.

Narrow money fell by 2.23 per cent, dropping from N44.7 trillion in June to N43.7 trillion in July.

Similarly, currency outside banks (CoB) declined by 2.08 per cent from N4.9 trillion to N4.8 trillion during the month.

Demand deposits also recorded a decline. The CBN data showed that demand deposits fell by 2.26 per cent month-on-month, moving from N39.8 trillion in June to N38.9 trillion in July.

However, quasi money moved in the opposite direction and recorded strong growth during the review period. It increased by 7.4 per cent from N88.5 trillion in June to N95.09 trillion in July 2026.

The contrasting movements in the various monetary indicators show that while private sector credit and several components of narrow money weakened in July, the broader monetary base continued to expand.

The decline in private-sector lending also contributed to the fall in net domestic credit, which dropped by more than four per cent during the month. At the same time, the rise in quasi money helped support the overall increase in broad money supply.

The CBN’s July figures therefore point to a mixed movement in Nigeria’s financial system, with credit to the private sector declining sharply while overall liquidity, measured through broad money supply, continued to rise.

The latest data will remain important for policymakers and financial institutions as they assess lending conditions, liquidity and the wider direction of monetary conditions in the Nigerian economy.

Can the sharp fall in private sector credit affect business expansion and economic activity in the coming months?