Nigeria’s private sector credit rises for third straight month to N84.55 trillion in August

Credit to Nigeria’s private sector rose for the third consecutive month in August 2026, reaching N84.55 trillion.

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

The figure increased from N83.43 trillion in July, representing a monthly gain of about N1.13 trillion, or 1.35%.

The continued increase points to a recovery in aggregate private sector lending, although high borrowing costs and uneven credit allocation across industries remain concerns for businesses.

What the data is saying

CBN data show that private sector credit rose from N81.04 trillion in May to N83.26 trillion in June, before increasing to N83.43 trillion in July and N84.55 trillion in August.

• The CBN’s database does not provide a March 2026 observation for private sector credit.
• Compared with August 2025, when credit stood at N75.88 trillion, the latest figure represents an increase of approximately N8.67 trillion, or 11.4%.
• The August increase follows two consecutive monthly gains, extending the recent upward trend in credit to businesses and other private sector borrowers.

However, the latest CBN database does not provide a sectoral breakdown for August, making it difficult to determine which industries accounted for the increase.

Get up to speed

The CBN’s Q1 2026 Statistical Bulletin showed significant differences in credit allocation 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 over the period, 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.
• 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 figures show that growth in overall private sector credit does not necessarily translate into increased lending across all industries.

The increase in private sector credit comes amid the CBN’s 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, as it continued to focus on inflation control and macroeconomic stability.
• Despite the high interest-rate environment, the CBN reported that demand for corporate and secured loans increased in the second quarter of 2026, while banks recorded lower default rates across major lending categories.
• However, manufacturers and other private sector operators have raised concerns about access to affordable credit.

The Manufacturers Association of Nigeria (MAN) previously reported that bank credit to the manufacturing sector declined by N1.92 trillion, from N8.53 trillion in December 2024 to N6.61 trillion in December 2025.

Consumer lending has also shown signs of weakness. The CBN reported that outstanding consumer credit fell by 19.89% to N3.78 trillion in 2025, from N4.72 trillion in the preceding period. This marked the first annual decline since December 2019.

The figures suggest that the recent increase in aggregate private sector credit is occurring alongside pressure in some important lending segments.

What you should know

Private sector groups, including the Centre for the Promotion of Private Enterprise (CPPE), have cautioned the CBN against further interest-rate increases, arguing that additional monetary tightening could weaken economic recovery and increase pressure on businesses and households.

For businesses, the cost of borrowing affects decisions on working capital, expansion, equipment purchases and investment.

While rising credit balances indicate that more financing is being extended in aggregate, the overall impact depends on the sectors receiving the loans, the terms of lending and whether borrowers can generate sufficient returns to service their debts.