The Central Bank of Nigeria (CBN) has reported a substantial decline in credit extended to the government, falling to N24.52 trillion in January 2025. This represents a significant drop from the N39.62 trillion recorded in November 2024 and N39.4 trillion in October 2024.

The downward trend in government credit is attributed to ongoing fiscal measures aimed at curbing excess borrowing and maintaining economic stability.

However, a comparison with previous months shows significant volatility in government credit, with fluctuations influenced by economic reforms and central bank interventions.

Interestingly, on a year-on-year basis, credit to the government in January 2025 is slightly higher than the N23.52 trillion recorded in January 2024, indicating a modest increase in government borrowing over the past year.