Nigeria’s private sector credit rose to N83.43tn in July 2026, showing that businesses and other private-sector borrowers continued to seek bank financing despite the high cost of borrowing and the Central Bank of Nigeria’s tight monetary policy stance.
Data from the CBN showed that private sector credit increased by N171.8bn, or 0.21 per cent, from N83.26tn in June. The July figure was also N6.70tn higher than the N76.72tn recorded in the same period last year, representing an 8.74 per cent year-on-year increase. Between April and July, lending to the private sector climbed by N2.84tn, from N80.59tn to N83.43tn.
The growth, however, slowed sharply in July after a stronger expansion in June, when private sector credit increased by N2.22tn. The latest rise came as the CBN maintained its Monetary Policy Rate at 26.50 per cent, as part of efforts to control inflation and maintain macroeconomic stability. Despite the restrictive environment, demand for financing remained firm among private-sector operators.
The trend was different for government borrowing during the month. Net domestic credit fell by N5.94tn, or 4.82 per cent, from N123.29tn in June to N117.35tn in July, while credit to the government dropped from N40.03tn to N33.92tn. However, the CBN data did not provide a sector-by-sector breakdown of the July increase, making it difficult to determine how much of the new lending went to areas such as manufacturing, agriculture, trade, real estate and other sectors.
For businesses, the continued rise in private sector credit could provide much-needed funding for working capital, expansion and investment. But with interest rates still elevated, the real benefit will depend on how affordable the loans are, their repayment terms and whether the funds are channelled into productive activities. The figures therefore point to a private sector that still needs financing, even as the high cost of credit continues to put pressure on businesses.
source: punch
