This was disclosed in the latest Money and Credit Statistics report by the Central Bank of Nigeria (CBN).
The data further revealed that net domestic credit in January 2024 stood at N99.99 trillion, while in November 2023, it was N85.35 trillion, underscoring the fluctuations in domestic lending within the past year.
However, the CBN did not provide figures for December 2024, leaving a crucial gap in understanding credit movement during the peak holiday spending period.
The sharp decline from N115.58 trillion in November 2024 to N99.41 trillion in January 2025 suggests a contraction in domestic credit issuance, potentially due to tightening monetary policies by the apex bank or reduced borrowing demand across sectors.
A contraction in net domestic credit could signal reduced liquidity in the economy, affecting investment, business expansion, and consumer spending.
Net domestic credit is the total amount of credit that the financial sector provides to the economy. It includes credit to the private sector, the non-financial public sector, and other accounts.