Private Sector Credit Hits N83.26trn as CBN Data Shows N2.22trn Rise in June

Credit extended to Nigeria's private sector rose by N2.22 trillion in June 2026, reaching N83.26 trillion from N81.04 trillion recorded in May, according to the latest economic data released by the Central Bank of Nigeria (CBN).

The increase represents a month-on-month growth of approximately 2.74 per cent, highlighting a continued expansion in credit available to businesses and other private-sector borrowers despite the relatively tight monetary policy environment.

On a year-on-year basis, private-sector credit also increased by about N7.13 trillion, rising from N76.13 trillion in June 2025 to N83.26 trillion in June 2026. This represents an annual growth rate of approximately nine per cent.

The latest figures come amid the CBN's ongoing efforts to strike a balance between containing inflationary pressures and ensuring that businesses and other productive sectors of the economy have access to credit needed to support investment and growth.

The CBN data also showed that the rise in private-sector credit occurred alongside an increase in net domestic credit during the period, although credit to the government and other assets recorded declines.

Credit to the government fell marginally from N40.38 trillion in May to N40.03 trillion in June, representing a decrease of about N350 billion.

Similarly, other assets, net, declined from N12.63 trillion to N10.76 trillion during the same period.

The movement in the various components of domestic credit suggests that the expansion in private-sector lending was not accompanied by a corresponding increase in government credit during the month under review.

On a year-on-year basis, private-sector credit increased by approximately N7.13 trillion compared with the N76.13 trillion recorded in June 2025.

The increase is significant for businesses operating in an economy where access to affordable and sustainable financing remains a major concern, particularly for micro, small and medium-sized enterprises and other productive sectors.

However, the growth in the volume of credit does not necessarily mean that borrowing costs have fallen or that all categories of businesses have gained equal access to financing. The CBN's monetary policy stance remains relatively tight, with interest rates still elevated as policymakers continue to focus on maintaining price stability.

The development also comes shortly after the CBN's 306th Monetary Policy Committee meeting, held on July 20 and 21, 2026.

At the meeting, the MPC reviewed developments in the global and domestic economies, assessed emerging risks to the economic outlook and considered their implications for monetary policy.

The committee retained the Monetary Policy Rate at 26.5 per cent.

It also maintained the Standing Facilities Corridor around the MPR at +50/-450 basis points.

The Cash Reserve Requirement was equally retained at 45 per cent for Deposit Money Banks, 16 per cent for Merchant Banks and 75 per cent for non-TSA public-sector deposits.

The decision reflected the committee's continued preference for a cautious monetary policy approach as it monitors inflation, economic growth and other macroeconomic risks.

Despite the high interest-rate environment, the latest CBN data indicate that lending to the private sector continued to expand during the month.

The increase may provide some relief to businesses seeking financing for working capital, expansion, production and other investment activities, although the actual impact will depend on the cost and accessibility of the credit extended.

The latest figures also come amid growing calls from business groups and other stakeholders for commercial banks to channel more funds towards the private sector and productive activities rather than concentrating heavily on government securities.

Supporters of increased private-sector lending argue that stronger access to credit could help businesses expand operations, create jobs, increase production and contribute to broader economic growth.

For the banking sector, however, the challenge remains balancing the need to lend to businesses with credit-risk considerations and the prevailing macroeconomic environment.

The N83.26 trillion private-sector credit figure therefore represents an important indicator of lending activity, but the sustainability of the trend will depend on broader economic conditions, including inflation, interest rates, business confidence and the ability of borrowers to repay loans.

As the CBN continues to maintain its monetary policy stance, developments in private-sector credit will remain a key indicator of how effectively monetary conditions are translating into financing for businesses and other productive activities across the Nigerian economy.