Private sector credit hits N83.26trn as lending rises by N7.13trn

Credit extended to Nigeria’s private sector climbed to N83.26 trillion in June 2026, reflecting sustained lending to businesses despite the Central Bank of Nigeria’s tight monetary policy stance aimed at curbing inflation and preserving macroeconomic stability.

Latest data released by the Central Bank of Nigeria (CBN) showed that private sector credit increased by N2.22 trillion, or 2.74 per cent, from N81.04 trillion recorded in May 2026.

On a year-on-year basis, lending to the private sector expanded by N7.13 trillion, representing a 9.37 per cent increase from N76.13 trillion in June 2025.

The growth in private sector lending came as the apex bank maintained the Monetary Policy Rate (MPR) at 26.50 per cent, signalling its determination to balance inflation control with the need to sustain economic activity.

The CBN data also showed that net domestic credit rose to N123.29 trillion in June from N121.42 trillion in May, an increase of N1.87 trillion, underscoring continued credit expansion within the economy.

Meanwhile, credit to the government declined marginally to N40.03 trillion from N40.38 trillion, while other assets (net) fell to N10.76 trillion from N12.63 trillion during the period.

The monetary authority also reported that reserve money increased slightly to N39.52 trillion in June from N39.45 trillion in May, reflecting an increase of about N66.54 billion.

The latest figures suggest that banks continued to extend credit to businesses even as borrowing costs remained elevated following the CBN’s aggressive monetary tightening cycle.

However, the apex bank did not provide a breakdown of lending across economic sectors.

The expansion in private sector credit comes shortly after the Monetary Policy Committee retained all key monetary policy parameters at its July meeting, maintaining the benchmark interest rate at 26.50 per cent to sustain the moderation in inflation and safeguard macroeconomic stability.

Analysts have noted that sustained growth in private sector lending remains critical to supporting investment, industrial production and job creation, although concerns persist over the concentration of credit and limited access to finance by small and medium-sized enterprises.

The Centre for the Promotion of Private Enterprise (CPPE) has previously argued that structural constraints within Nigeria’s credit ecosystem continue to limit financing to productive sectors capable of driving long-term economic growth and industrialisation.

The latest CBN data also showed that broad money supply rose to N133.25 trillion in June from N129.21 trillion in May, while net domestic assets increased during the period even as net foreign assets recorded a slight decline.