Nigerian banks increased their lending to the Federal Government by N15.66 trillion over the past year, underscoring the growing dominance of public sector borrowing in the country’s credit market.
Data from the Central Bank of Nigeria (CBN) shows that credit to government rose from N23.93 trillion in April 2025 to N39.60 trillion in April 2026, representing a 65.44 per cent increase year-on-year.
The sharp rise means government borrowing accounted for the bulk of the expansion in domestic credit during the period, while lending to businesses and households recorded only modest growth.
According to the CBN’s money and credit statistics, net domestic credit increased from N102.00 trillion in April 2025 to N120.18 trillion in April 2026, reflecting a growth of N18.18 trillion or 17.83 per cent.
Of this increase, credit to government contributed N15.66 trillion, while credit to the private sector grew by just N2.52 trillion, rising from N78.07 trillion to N80.59 trillion.
This means approximately 86 per cent of the total increase in domestic credit over the one-year period was driven by government borrowing.
While government borrowing expanded significantly, lending to the private sector remained under pressure.
Compared with February 2026, credit to government increased marginally from N39.36 trillion to N39.60 trillion in April, an addition of N239.92 billion or 0.61 per cent.
However, private sector credit declined sharply during the same period, falling from N94.61 trillion in February to N80.59 trillion in April, a drop of N14.02 trillion or 14.82 per cent.
The CBN did not publish March 2026 figures, making month-on-month comparisons unavailable.
The latest figures show that government borrowing is taking up a larger share of available credit within the banking system.
Between December 2025 and April 2026, credit to government rose by N5.38 trillion, from N34.22 trillion to N39.60 trillion, representing a 15.71 per cent increase within four months.
As a result, government’s share of net domestic credit climbed from 23.46 per cent in April 2025 to 32.95 per cent in April 2026.
The trend suggests banks are increasingly directing funds toward government securities and lending opportunities, while credit growth to the productive private sector remains subdued.
