Credit to Nigeria’s private sector increased to N81.04 trillion in May 2026, reflecting a modest rise from N80.59 trillion recorded in April, despite the Central Bank of Nigeria (CBN) maintaining a tight monetary policy stance to curb inflation.
Latest CBN data also showed that net domestic credit rose to N121.42 trillion in May from N120.18 trillion in April, while net other assets increased to N12.63 trillion from N11.88 trillion during the same period.
The increase suggests that lending activity remained resilient even as borrowing costs stayed elevated across the economy.
What the data is saying
The latest monetary statistics reveal sustained year-on-year growth in private sector lending and broader domestic credit aggregates, reflecting continued expansion in financial system liquidity.
- Credit to the private sector rose to N81.04 trillion in May 2026 from N77.97 trillion in May 2025, representing a 3.9% year-on-year increase.
- Net domestic credit increased to N121.42 trillion from N100.96 trillion in the corresponding period of 2025, indicating a 20.3% year-on-year growth.
- Net other assets climbed to N12.63 trillion in May 2026 from N8.29 trillion a year earlier, representing a 52.2% increase.
The CBN is yet to provide a sectoral breakdown of private sector credit allocations for May 2026.
The figures point to continued credit growth despite prevailing macroeconomic challenges and tight financial conditions.
Context
The increase in private sector credit comes as the CBN continues to balance inflation control with support for economic growth.
- At its 305th Monetary Policy Committee (MPC) meeting held on May 19–20, 2026, the CBN unanimously retained the Monetary Policy Rate (MPR) at 26.50%.
- The apex bank also maintained all other key monetary policy parameters to sustain disinflation and preserve macroeconomic stability.
- Analysts said the policy stance reflects the CBN’s efforts to contain inflationary pressures while supporting economic activity.
However, they noted that elevated borrowing costs, exchange rate volatility, and banks’ preference for investing in government securities continue to constrain stronger credit expansion.
Analysts further argued that while credit growth remains positive, broader macroeconomic uncertainties may continue to limit access to affordable financing for businesses.
What you should know
The Centre for the Promotion of Private Enterprise (CPPE) has previously warned that structural weaknesses in Nigeria’s credit ecosystem continue to restrict financing to productive sectors capable of driving industrialisation and job creation.
Experts have consistently called for reforms to improve financial intermediation and channel more credit to productive sectors of the economy.
The latest increase in private sector credit suggests continued lending activity, although stakeholders maintain that deeper structural reforms will be required to significantly expand access to finance and support sustainable economic growth.
