Credit to Nigeria’s private sector increased slightly to N75.62 trillion in February 2026, up from N75.24 trillion recorded in January.
This is according to the latest monetary and credit statistics released by the Central Bank of Nigeria (CBN).
The figure represents total lending by banks and other financial institutions to businesses and households, including loans, trade credit, and other receivables—key drivers of investment, consumption, and overall economic growth.
What the data is saying
Despite the marginal month-on-month increase, a year-on-year comparison shows that private sector credit remains under pressure.
- In February 2025, credit stood higher at N76.26 trillion, indicating a slight contraction over the past year.
- Credit peaked at N78.07 trillion in April 2025, before declining in subsequent months.
- The lowest level was recorded in September 2025 at N72.53 trillion, reflecting tighter financial conditions and cautious lending.
The recent uptick suggests a gradual recovery in lending activity, though not yet strong enough to reverse the broader downward trend observed over the past year.
More insights
Total credit in the economy continued to expand, driven largely by increased domestic lending.
- Net domestic credit rose to N111.40 trillion in February 2026, from N109.43 trillion in January.
- Credit to the government climbed significantly to N35.77 trillion, up from N34.19 trillion in the previous month.
The sustained rise in government borrowing raises concerns about potential crowding-out effects, where increased public sector demand for funds limits the availability of credit to private businesses.
Context
The modest growth in private sector credit comes amid a delicate monetary policy environment.
- In September 2025, the CBN’s Monetary Policy Committee (MPC) reduced the Monetary Policy Rate (MPR) by 50 basis points to 27% to stimulate economic activity and ease borrowing costs.
- The rate was held at the same level in November, reflecting a cautious approach aimed at balancing growth support with inflation control.
- However, high borrowing costs, persistent inflationary pressures, and exchange rate volatility have continued to weigh on lending appetite. Financial institutions remain selective in extending credit, particularly to riskier sectors, which has contributed to the uneven credit trend observed over the past year.
The absence of detailed sectoral data makes it difficult to identify the key drivers behind the recent increase.
Nonetheless, the uptick may signal early signs of stabilising macroeconomic conditions and a gradual restoration of lender confidence.
Meanwhile, the Centre for the Promotion of Private Enterprise (CPPE) had earlier raised concerns over persistent structural weaknesses in Nigeria’s credit system, warning that despite the success of the recent bank recapitalisation exercise, lending remains skewed and largely disconnected from the productive sectors of the economy.
What you should know
At its November 2025 meeting, the CBN voted to retain the Cash Reserve Ratio at 45.0 per cent for commercial banks and 16.0 per cent for merchant banks.
- The apex bank also maintained Liquidity Ratio at 30.0 per cent.
- The CBN fixed the Standing Facilities Corridor at +50/-450 basis points around the MPR.
Nairametrics earlier reported that Nigeria’s broad money supply (M3) fell marginally to N123.15 trillion in February 2026, down from N123.36 trillion in January 2026.
