Credit extended to Nigeria’s private sector rose to N83.43 trillion in July 2026, reflecting increased borrowing by businesses and other private-sector operators despite the Central Bank of Nigeria’s (CBN) tight monetary policy stance.
Latest CBN monetary statistics showed that private-sector borrowing increased by N2.84 trillion, or 3.52 per cent, from N80.59 trillion in April to N83.43 trillion in July.
On a year-on-year basis, private-sector credit grew by N6.70 trillion, or 8.74 per cent, from N76.72 trillion recorded in July 2025.
The data showed a steady increase in lending during the period, with credit rising 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 occurred between May and June, when private-sector credit expanded by about N2.22 trillion. Growth moderated in July, with lending increasing by N171.8 billion, representing 0.21 per cent month-on-month.
The rise came despite the CBN maintaining its benchmark Monetary Policy Rate at 26.5 per cent at its July 2026 Monetary Policy Committee meeting, as the apex bank continued efforts to contain inflation and preserve macroeconomic stability.
However, the latest CBN database does not provide a sector-by-sector breakdown of the July private-sector credit figure.
Earlier CBN data showed mixed lending trends across major sectors. By March 2026, agriculture credit stood at N3.86 trillion, while lending to manufacturing had declined to N5.77 trillion from N6.57 trillion in January. Credit to power and energy, however, increased from N1.30 trillion to N1.61 trillion, while real estate lending rose from N4.67 trillion to N6.29 trillion.
The increase in private-sector credit also coincided with a decline in overall net domestic credit, which fell by N5.94 trillion, or 4.82 per cent, to N117.35 trillion in July from N123.29 trillion in June.
Government credit also declined, dropping from N40.03 trillion in June to N33.92 trillion in July.
The latest figures point to continued demand for bank financing by businesses, even amid elevated borrowing costs and tighter monetary conditions.
Private-sector groups have previously cautioned that further monetary tightening could increase financing costs and place additional pressure on businesses and households.
The Manufacturers Association of Nigeria, for instance, had raised concerns over declining bank credit to the manufacturing sector, while the Centre for the Promotion of Private Enterprise warned against further interest-rate increases that could weaken economic recovery.
The continued expansion of private-sector credit comes as Nigeria’s broader money supply also increased. CBN data showed that broad money supply (M3) rose to N138.78 trillion in July 2026, up 16 per cent from N119.89 trillion a year earlier.
