Private sector credit in Nigeria climbed to N83.43 trillion in July 2026, as businesses and other private-sector borrowers increased their access to bank financing despite the Central Bank of Nigeria’s (CBN) tight monetary policy stance.
Latest CBN data showed that private sector credit rose by N2.84 trillion, or 3.52%, from N80.59 trillion in April to N83.43 trillion in July. On a year-on-year basis, credit expanded by N6.70 trillion, representing an 8.74% increase from the N76.72 trillion recorded in July 2025.
The biggest jump during the period came between May and June, when private sector credit increased by about N2.22 trillion, rising from N81.04 trillion to N83.26 trillion. Growth then slowed sharply in July, with credit edging up by N171.80 billion, or 0.21%. The latest CBN database, however, does not provide a sector-by-sector breakdown for the period.
The rise in private sector lending came even as overall domestic credit weakened. Net domestic credit fell to N117.35 trillion in July from N123.29 trillion in June, while credit to government dropped from N40.03 trillion to N33.92 trillion. The increase in private sector borrowing also comes against the backdrop of the CBN retaining its Monetary Policy Rate at 26.50% in July as it continues efforts to contain inflation and maintain economic stability.
The latest trend suggests that demand for business financing remains active, with the CBN reporting increased demand for corporate and secured loans in the second quarter of 2026 alongside lower default rates across major lending categories. However, concerns remain over the cost and availability of credit, particularly for manufacturers, as businesses continue to navigate high interest rates and challenging operating conditions.
source: nairametrics
