Domestic credit to Nigeria’s economy crossed the N100 trillion threshold for the first time in November, highlighting continued expansion in lending, largely driven by increased borrowing by the Federal Government.
Data from the Central Bank of Nigeria (CBN) show that total domestic credit rose by 1.7 per cent month-on-month to N100.98 trillion in November, up from N99.2 trillion recorded in October. This historic milestone underscores growing liquidity in the financial system amid ongoing fiscal and monetary adjustments.
The rise was mainly fueled by a sharp increase in credit to the government, which expanded by 6.4 per cent month-on-month to N26.4 trillion in November, compared with N24.8 trillion in October. The CBN disclosed this in its Money and Credit Statistics for November 2025.
Credit to the private sector also recorded marginal growth, increasing by 0.26 per cent to N74.6 trillion in November from N74.4 trillion in the preceding month, suggesting cautious but sustained lending to businesses and households.
The expansion in domestic credit was mirrored in the banking system’s reserves, which declined for the second consecutive month to N30.9 trillion in November from N31.58 trillion in October, reflecting increased utilisation of funds within the economy.
Broad money supply (M2) followed a similar trend, rising by 3.2 per cent to N122.94 trillion in November, up from N119.03 trillion in October, further indicating higher liquidity levels.
Meanwhile, Nigeria’s public debt profile continues to expand. Figures from the Debt Management Office (DMO) show that total public debt outstanding stood at N152.40 trillion at the end of June 2025, representing 33.98 per cent of GDP. This compares with N144.67 trillion, or 38.80 per cent of GDP, recorded at the end of December 2024, largely due to fresh borrowings.
On the revenue side, the CBN’s Macroeconomic Outlook for 2026 revealed that Federal Government revenue rose to N34.82 trillion in 2025, representing a 21.98 per cent increase over the N28.55 trillion recorded in 2024. The improvement was attributed to stronger resource-based revenues, recovery in the oil sector, policy reforms, institutional improvements, relatively stable global oil prices, and higher crude oil production.
Looking ahead, the apex bank projected a moderation in debt growth pressures, noting that the impact of exchange rate movements on public debt—one of the major drivers of debt expansion between 2023 and 2025—is expected to decline significantly in 2026 as exchange rate stability improves.