LAGOS, June 24 – Credit extended to Nigeria’s private sector rose to N81.04 trillion ($59.1 billion) in May 2026, up from N80.59 trillion recorded in April, according to the latest data from the Central Bank of Nigeria (CBN). The increase came despite the bank’s tight monetary policy aimed at slowing inflation.
The figures also showed that net domestic credit increased to N121.42 trillion in May from N120.18 trillion a month earlier, while net other assets rose to N12.63 trillion from N11.88 trillion.
Compared with the same period last year, lending to the private sector grew by 3.9% from N77.97 trillion. Net domestic credit was up 20.3% from N100.96 trillion in May 2025, while net other assets increased by 52.2% from N8.29 trillion.
Although the CBN has yet to release a breakdown of credit by sector, the latest figures suggest banks continued to lend even as borrowing costs remained high.
At its 305th Monetary Policy Committee meeting held on May 19 and 20, the CBN left the Monetary Policy Rate unchanged at 26.5%. It also retained all other key policy rates as it seeks to keep inflation under control while supporting economic activity.
Analysts said high lending rates, exchange rate volatility and banks’ preference for government securities are still limiting stronger credit growth across the economy.
The Centre for the Promotion of Private Enterprise has also raised concerns that structural weaknesses in Nigeria’s credit system continue to limit financing for productive sectors that can drive industrial growth and create jobs.
Recent CBN data also showed that Nigeria’s broad money supply (M3) increased to N129.21 trillion in May from N124.99 trillion in April. Meanwhile, the African Development Bank estimates that private sector credit accounts for just 9.4% of Nigeria’s Gross Domestic Product, highlighting the country’s relatively low level of business financing.
