CBN: Banks credit to finance sector jumps to N9.8 trillion in March

Credit extended by Nigerian deposit money banks to the finance, insurance and capital market sector rose to N9.80 trillion in March 2026, while credit to government reached N3.38 trillion.

This is according to the Central Bank of Nigeria’s (CBN) Q1 2026 Statistical Bulletin.

The latest figures also show differing credit trends across major sectors, with trade and general commerce, finance and related activities, and other sectors recording notable movements during the first quarter of 2026.

What the data is saying

The CBN data show that credit to the finance, insurance and capital market sector stood at N9.03 trillion in January 2026 before rising to N9.16 trillion in February and N9.80 trillion in March.

• Government credit stood at N3.45 trillion in January, fell to N3.26 trillion in February and rose to N3.38 trillion in March.
• Credit to trade and general commerce increased from N4.67 trillion in January to N5.54 trillion in February and N6.29 trillion in March.
• Construction credit increased from N2.14 trillion in January to N2.44 trillion in February and N2.65 trillion in March.
• Credit to services, represented by the general services category in the table, increased from N4.75 trillion in January to N5.58 trillion in March.

The figures indicate that lending to several sectors increased between January and March, although movements varied across individual sectors.

The first-quarter figures also show significant changes in credit allocation across the broader economy, with some sectors recording increases while others experienced declines.

• Agriculture credit rose by about N150 billion between January and March, representing an increase of approximately 4.0%.
• Oil and gas credit declined from N10.91 trillion in January to N10.71 trillion in February and N10.58 trillion in March, a total reduction of about N335 billion.
• Manufacturing credit fell from N6.57 trillion in January to N5.77 trillion in March.
• Power and energy lending increased from N1.30 trillion in January to N1.61 trillion in March.

The changes suggest that bank lending did not move uniformly across sectors during the first quarter, with increases in some areas occurring alongside declines in others.

Get up to speed

The increase in bank credit came against the backdrop of changes in the CBN’s monetary policy stance as the apex bank sought to balance economic growth with inflation control.

• 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 27% in November 2025, reflecting a cautious approach aimed at balancing growth support with inflation control.

However, high borrowing costs, persistent inflationary pressures and exchange rate volatility continued to weigh on lending appetite.

• In February 2026, the CBN reduced the MPR by another 50 basis points, from 27% to 26.5%, during its 304th MPC meeting.

The monetary policy changes provided some easing in the cost of funds, although lending conditions remained influenced by broader economic pressures.

What you should know

The latest data follow an earlier Nairametrics report showing that agriculture credit rose to N3.86 trillion in March 2026, even as lending to the oil and gas sector declined by about N335 billion over the first three months of the year.

Earlier supplied CBN data for the review showed credit to Nigeria’s private sector increased slightly to N75.62 trillion in February 2026, up from N75.24 trillion recorded in January.

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.