Credit to the Nigerian government rose by 63.09 per cent year-on-year to N39.40 trillion in September 2026, while lending to the private sector declined marginally, according to the Central Bank of Nigeria’s latest money and credit statistics.
Government credit increased by N15.24 trillion from N24.16 trillion in September 2025. The latest figures also showed a sharp monthly rebound, with credit to government rising by N6.36 trillion, or 19.26 per cent, from N33.04 trillion in August.
The increase contrasts with developments in private-sector lending, which fell by 0.64 per cent to N83.93 trillion in September from N84.47 trillion in the preceding month.
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Despite the monthly decline, private-sector credit remained 15.7 per cent above its level in September 2025, indicating that lending to businesses and other private borrowers continued to expand on an annual basis.
The divergent movements suggest that government financing accounted for a growing share of the monthly expansion in domestic credit at a time when businesses continue to face elevated borrowing costs.
Net domestic credit, which covers credit to government and the private sector alongside other relevant components, increased by 4.96 per cent to N123.34 trillion in September, from N117.51 trillion in August.
The latest increase reversed a three-month decline in credit to government. The figure had fallen from N40.03 trillion in June to N33.99 trillion in July and N33.04 trillion in August before rebounding in September.
On an annual basis, net domestic credit increased by 27.56 per cent, from approximately N96.69 trillion in September 2025 to N123.34 trillion in September 2026.
Government credit accounted for about 57.2 per cent of the N26.65 trillion annual expansion, while private-sector credit contributed approximately 42.8 per cent.
Broad money supply, measured by M3, also increased by 24.47 per cent year-on-year to N146.60 trillion in September, from N117.78 trillion a year earlier.
Although both government and private-sector credit recorded substantial annual growth, the latest monthly figures point to a stronger immediate expansion in government financing than in private-sector lending.
The data do not, by themselves, establish that government borrowing directly displaced lending to businesses. However, the contrasting movements highlight the importance of monitoring how credit growth is distributed between the public and private sectors.
