{"id":21627,"date":"2025-10-21T17:30:00","date_gmt":"2025-10-21T16:30:00","guid":{"rendered":"https:\/\/www.funminews.com\/?p=21627"},"modified":"2025-10-21T14:42:37","modified_gmt":"2025-10-21T13:42:37","slug":"n98-97-trillion-and-falling-is-nigerias-credit-system-buckling-under-policy-shifts","status":"publish","type":"post","link":"https:\/\/www.funminews.com\/index.php\/2025\/10\/21\/n98-97-trillion-and-falling-is-nigerias-credit-system-buckling-under-policy-shifts\/","title":{"rendered":"N98.97 Trillion and Falling: Is Nigeria\u2019s Credit System Buckling Under Policy Shifts?"},"content":{"rendered":"\n

Nigeria\u2019s Net Domestic Credit (NDC) declined by 12.8% year-on-year in August 2025, falling to 98.97 trillion Naira, according to the Central Bank of Nigeria\u2019s (CBN) latest Money and Credit report.<\/p>\n\n\n\n

NDC represents the total value of bank credit extended to both the public and private sectors. Analysts attribute the decline to monetary policy easing, as inflation continues to trend downward.<\/p>\n\n\n\n

Vanguard\u2019s analysis revealed that in August 2025, bank credit to the government stood at 23.133 trillion Naira, while credit to the private sector reached 75.843 trillion Naira, bringing the total NDC to 98.97 trillion Naira.<\/p>\n\n\n\n

In comparison, during the same period in 2024, credit to the government was 39.391 trillion Naira, and credit to the private sector stood at 74.072 trillion Naira, resulting in a total NDC of 113.463 trillion Naira.<\/p>\n\n\n\n

On a monthly basis, NDC stood at 102.406 trillion Naira in January 2025 and increased by 0.9% to 103.369 trillion Naira in February. However, it dropped sharply by 34% to 68.177 trillion Naira in March.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

In the second quarter, NDC rebounded by 49.6% to 102.002 trillion Naira in April. It then declined by 1.03% to 100.955 trillion Naira in May and further dropped by 3.13% to 97.787 trillion Naira in June. While July data was unavailable, August saw a modest increase of 1.2%.<\/p>\n\n\n\n

Commenting on the development, Dr. Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise (CPPE), commended the CBN\u2019s Monetary Policy Committee (MPC) for reducing the Monetary Policy Rate (MPR), describing it as \u201ca welcome and timely intervention.\u201d<\/p>\n\n\n\n

Yusuf noted that the lower MPR, combined with a reduced Cash Reserve Ratio (CRR), should enhance banks\u2019 capacity to extend credit and reduce lending rates. \u201cThis will support business expansion, stimulate output growth, and create jobs,\u201d he said.<\/p>\n\n\n\n

However, he cautioned that monetary easing alone is not enough. \u201cFiscal authorities must prioritize infrastructure to reduce production costs, strengthen the regulatory framework, and sustain fiscal consolidation to ensure macroeconomic stability and investor confidence,\u201d Yusuf added.<\/p>\n\n\n\n

David Adonri, Executive Vice Chairman at High Cap Securities Limited, also expressed concern over the persistent contraction in credit. \u201cIt raises serious questions about business funding at a time when inflation, foreign exchange pressures, and weak consumer demand are already squeezing the economy,\u201d he said.<\/p>\n\n\n\n

Nigeria\u2019s monetary shift aligns with a broader trend across Africa, where central banks are easing policy as inflation cools. Ghana recently cut its policy rate by 350 basis points to 21.5%, while Kenya lowered its benchmark rate to 9.5% in mid-August. Nigeria\u2019s MPR remains among the highest on the continent, reflecting ongoing inflationary pressures.<\/p>\n","protected":false},"excerpt":{"rendered":"

Nigeria\u2019s Net Domestic Credit (NDC) declined by 12.8% year-on-year in August 2025, falling to 98.97 trillion Naira, according to the Central Bank of Nigeria\u2019s (CBN) latest Money and Credit report. NDC represents the total value of bank credit extended to both the public and private sectors. Analysts attribute the decline to monetary policy easing, as […]<\/p>\n","protected":false},"author":2,"featured_media":21635,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[4,3],"tags":[],"class_list":["post-21627","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-featured","category-naija-news"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/www.funminews.com\/wp-content\/uploads\/2025\/10\/Nigeria.jpg?fit=600%2C493&ssl=1","jetpack_likes_enabled":true,"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.funminews.com\/index.php\/wp-json\/wp\/v2\/posts\/21627","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.funminews.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.funminews.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.funminews.com\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.funminews.com\/index.php\/wp-json\/wp\/v2\/comments?post=21627"}],"version-history":[{"count":1,"href":"https:\/\/www.funminews.com\/index.php\/wp-json\/wp\/v2\/posts\/21627\/revisions"}],"predecessor-version":[{"id":21636,"href":"https:\/\/www.funminews.com\/index.php\/wp-json\/wp\/v2\/posts\/21627\/revisions\/21636"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.funminews.com\/index.php\/wp-json\/wp\/v2\/media\/21635"}],"wp:attachment":[{"href":"https:\/\/www.funminews.com\/index.php\/wp-json\/wp\/v2\/media?parent=21627"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.funminews.com\/index.php\/wp-json\/wp\/v2\/categories?post=21627"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.funminews.com\/index.php\/wp-json\/wp\/v2\/tags?post=21627"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}