Businesses borrow more as private sector credit swells to N83.43 trillion

Credit to Nigeria’s private sector increased by about N2.84 trillion between April and July 2026, reaching N83.43 trillion in July from N80.59 trillion in April.

This is according to the latest data from the Central Bank of Nigeria (CBN).

The increase represents a 3.52% rise over the three-month period, pointing to a gradual expansion in lending to businesses and other private-sector borrowers.

Year-on-year, private sector credit increased by N6.70 trillion, or 8.74%, from N76.72 trillion recorded in July 2025.

What the data is saying

The latest data show that private sector credit rose from N80.59 trillion in April to N81.04 trillion in May and N83.26 trillion in June before reaching N83.43 trillion in July.

• The strongest monthly increase within the period occurred between May and June, when credit expanded by about N2.22 trillion.
• Growth then moderated significantly in July, with lending increasing by approximately N171.80 billion, or 0.21%, from June.
• The CBN database does not provide a figure for March 2026, making April the earliest available data point for assessing the three-month increase.
• It also does not provide the sector-by-sector distribution of private sector credit for the months covered in the latest database.

The increase in private sector credit came alongside a decline in net domestic credit.

Net domestic credit fell to N117.35 trillion in July from N123.29 trillion in June, representing a decline of about N5.94 trillion, or 4.82%.

Credit to government also declined during the month, falling from N40.03 trillion in June to N33.92 trillion in July.

Get up to speed

While the latest CBN database does not provide the sectoral breakdown for private sector credit, its Q1 2026 statistical bulletin showed significant changes in lending across major economic sectors.

• Agriculture received N3.86 trillion in credit by March 2026, while lending to oil and gas declined from N10.91 trillion in January to N10.58 trillion in March.
• Manufacturing credit also fell from N6.57 trillion in January to N5.77 trillion in March.
• In contrast, lending to power and energy increased from N1.30 trillion to N1.61 trillion, while real estate credit rose from N4.67 trillion to N6.29 trillion over the same period.
• Credit to trade and general commerce also increased to N6.29 trillion in March, while lending to the finance, insurance and capital market sector reached N9.80 trillion.

The growth in private sector credit comes despite the CBN maintaining a tight monetary policy stance.

At its July 2026 Monetary Policy Committee meeting, the apex bank retained the Monetary Policy Rate at 26.50% and maintained other key policy parameters.

The decision reflected the CBN’s continued focus on controlling inflation and preserving macroeconomic stability while monitoring the effect of monetary conditions on economic activity.

What you should know

Demand for corporate and secured loans increased in the second quarter of 2026 as Nigerian banks expanded credit availability and recorded lower default rates across major lending categories, according to the CBN.

• Recently, the Manufacturers Association of Nigeria (MAN) raised fresh concerns as bank credit to the sector declined by N1.92 trillion from N8.53 trillion in December 2024 to N6.61 trillion in December 2025.
• The CBN noted that consumer credit outstanding fell by 19.89% to N3.78 trillion in 2025 from N4.72 trillion in the preceding period, marking the first decline since December 2019.
• Private sector operators, including the Centre for the Promotion of Private Enterprise (CPPE), have warned the CBN against further increases in interest rates, arguing that additional monetary tightening could weaken economic recovery and worsen pressure on businesses and households.

Nairametrics earlier reported that Nigeria’s broad money supply (M3) increased to N138.78 trillion in July 2026, representing a 16% year-on-year rise from N119.89 trillion recorded in July 2025.