Financial institutions’ net credit to government rose by eight per cent or N1.96 trillion to N26.49 trillion as at February 2025, compared with N24.53 trillion in the previous month, data released by the Central Bank of Nigeria (CBN) shows.

New Telegraph’s analysis of the latest “Money and Credit statistics,” posted on the apex bank’s website, yesterday, indicates that with credit to the private sector dropping by 1.67 per cent to N73.66 trillion in February 2025 from N74.92 trillion in January, the net domestic credit (loans to government plus loans to the private sector) stood at N100.15 trillion last month.

The amount is 0.72 per cent or, N711.84 billion, less than the N99.44 trillion recorded in January. Analysts note that the increase in net credit to government is an indication that the FG’s fiscal deficit is widening.

According to the Medium-Term Expenditure Framework (MTEF) for the period 2022-2026, the Federal Government has projected a fiscal deficit of N13.08 trillion in 2025, an increase from the estimated N9.18 trillion for 2024 and one of the largest on record.

The (MTEF) attributes this increase to factors such as the new minimum wage, pension obligations and rising debt service costs. Meanwhile, further analysis of the CBN data indicates that total amount of Currency-In-Circulation (CIC) declined by 3.79 per cent or N198.42 billion to N5.04 trillion in February 2025 from N5.24 trillion in the previous month.

Similarly, the data shows that Currency Outside Banks (COB) fell by 4.68 per cent or N221.67 billion to N4.52 trillion in February compared with N4.74 trillion in January.