According to the Central Bank of Nigeria's latest money and credit statistics, credit to the private sector rose for the third consecutive month in August, climbing to N84.55 trillion. This represents an increase of N1.13 trillion, or 1.35 per cent, from N83.43 trillion in July. The growth in private sector credit is a significant development, highlighting a shift in the direction of domestic credit.
The August increase in private sector credit followed a N171.8 billion rise in July, when private-sector credit moved up from N83.26 trillion in June. Overall, private-sector credit has gained N3.51 trillion, or 4.33 per cent, since May, when it stood at N81.04 trillion. This recovery comes after a sharp contraction earlier in the year, with private-sector credit having risen to N94.61 trillion in February, its highest level in the period.
Despite the recent growth, private sector credit remains about N10.06 trillion below its February peak. However, the year-on-year picture is stronger, with private-sector credit increasing by N8.67 trillion, or 11.43 per cent, over the year to N75.88 trillion in August 2025. This indicates a significant improvement in credit availability to the private sector.
In contrast, government credit has been moving in the opposite direction, falling by N1.22 trillion, or 3.60 per cent, from N33.92 trillion in July to N32.70 trillion in August. This extended the decline which began in June, with government credit standing at N40.38 trillion in May, falling to N40.03 trillion in June, N33.92 trillion in July and N32.70 trillion in August.
The decline in government credit has resulted in a N7.68 trillion, or 19.02 per cent, drop in three months. Despite this, government credit remains well above its level a year earlier, with the August figure N9.75 trillion, or 42.47 per cent, higher than the N22.95 trillion recorded in August 2025.
The divergent trends in private sector and government credit have widened the gap between them to N51.85 trillion in August, from N40.66 trillion in May. Meanwhile, currency in circulation rebounded modestly in August, rising to N5.44 trillion, from N5.38 trillion in July, an increase of N53.6 billion, or one per cent.
The data also shows that currency outside banks increased, rising N70.9 billion, or 1.48 per cent, to N4.87 trillion in August from N4.80 trillion in July. This represents a 9.53 per cent increase from N4.45 trillion recorded a year earlier. The August data therefore shows a clear divergence: private-sector credit has added N3.51 trillion in three months, while government credit has shed N7.68 trillion.
Key points
- Private sector credit rose to N84.55 trillion in August, while government credit fell to N32.70 trillion.
- The gap between private sector and government credit has widened to N51.85 trillion.
- Currency in circulation rebounded modestly in August, rising to N5.44 trillion.
