Nigeria’s credit to the private sector posted a modest rebound in October, recovering from an 18-month low recorded in September. Fresh data from the Central Bank of Nigeria shows that lending to private firms rose by 2.6 percent to N74.41 trillion, reflecting a renewed appetite for credit following the first interest-rate cut in five years announced in September.
The figures also indicate that banking system reserves fell sharply, dropping from N34.67 trillion in September to N31.58 trillion in October. The decline, driven largely by increased credit flows rather than reserve build-up, points to a more liquid financial system as banks channel more funds into the economy.
The improvement comes against the backdrop of monetary policy shifts, with policymakers cutting rates by 50 basis points in September to support growth amid a seventh consecutive month of easing inflation. Although rates were held steady in November, the Central Bank adjusted the corridor around the benchmark interest rate in a move widely viewed as further signalling a gradual easing stance.
