Nigerian banks increased lending to the agriculture sector to ₦3.86 trillion in March 2026, even as credit to oil and gas fell by ₦335 billion in the first quarter, according to the Central Bank of Nigeria’s (CBN) latest Quarterly Statistical Bulletin.
The shift underscores a changing credit landscape in which agriculture is gaining ground while some traditional heavyweights, particularly oil and gas and manufacturing, see their share of bank financing shrink.
Sectoral credit trends in Q1 2026
CBN data shows a steady month-on-month rise in agricultural credit during the first three months of 2026:
January: ₦3.71 trillion
February: ₦3.81 trillion
March: ₦3.86 trillion
This represents an increase of about ₦150 billion, or roughly 4%, over the quarter.
In contrast, oil and gas lending declined from ₦10.91 trillion in January to ₦10.58 trillion in March, a drop of ₦335 billion. Manufacturing credit also fell sharply, from ₦6.57 trillion to ₦5.77 trillion over the same period.
Other notable movements include:
Power and energy: up from ₦1.30 trillion to ₦1.61 trillion
Real estate: up from ₦4.67 trillion to ₦6.29 trillion
Total private sector credit rose from ₦57.41 trillion in January to ₦59.74 trillion in March, indicating that overall lending expanded even as its composition shifted across sectors.
Broader credit picture and policy context
Separate CBN statistics show net domestic credit increased to ₦111.40 trillion in February 2026 from ₦109.43 trillion in January, while credit to the government climbed to ₦35.77 trillion from ₦34.19 trillion. These figures belong to a different CBN credit series and should not be added to the private-sector sectoral numbers above.
The first-quarter lending pattern comes against a backdrop of still-high borrowing costs. In September 2025, the CBN’s Monetary Policy Committee cut the Monetary Policy Rate by 50 basis points to 27% to support growth, and held it steady in November, but inflation, exchange-rate volatility and elevated rates continue to dampen lending appetite in some segments.
Implications for agriculture and the real economy
The rise in agricultural credit aligns with long-standing policy pushes to boost food production, reduce import dependence and strengthen rural economies. With agriculture remaining a key employer and contributor to GDP, improved access to finance can support inputs, mechanisation, storage and value-chain development—if paired with risk-mitigation measures and sound project appraisal.
At the same time, the contraction in oil and gas credit may reflect tighter risk assessment, slower project pipelines, or banks rebalancing exposure amid volatile global energy markets and domestic FX pressures. The simultaneous decline in manufacturing credit is a concern, given the sector’s role in jobs and local value addition, and may warrant targeted interventions to ease financing constraints.
Overall, the Q1 2026 data points to a credit reallocation: agriculture and some infrastructure-related sectors are gaining, while oil and gas and manufacturing are losing ground in the competition for bank funds.
