Credit extended to Nigeria’s private sector increased by N2.22 trillion in June 2026, reflecting sustained lending to businesses despite the Central Bank of Nigeria’s (CBN) tight monetary policy.
Latest CBN economic data shows that private sector credit rose from N81.04 trillion in May to N83.26 trillion as of June 30, representing a 2.74 per cent month-on-month increase.
On a year-on-year basis, lending to the private sector grew by N7.13 trillion, or about 9 per cent, from N76.13 trillion recorded in June 2025.
The increase comes as the CBN continues to balance efforts to curb inflation while supporting economic growth and expanding access to finance for businesses.
While lending to businesses rose, credit to the Federal Government declined slightly during the period.
CBN data showed that government credit fell to N40.03 trillion in June from N40.38 trillion in May.
Similarly, other net assets dropped from N12.63 trillion to N10.76 trillion.
Despite these declines, overall domestic credit expanded during the month, driven largely by stronger lending to the private sector.
The latest figures indicate that commercial banks continued to channel more funds to businesses even as interest rates remained elevated.
The CBN’s Monetary Policy Committee (MPC), at its 306th meeting held on July 20 and 21, retained all key monetary policy parameters, maintaining its cautious approach to inflation management.
The committee left the:
- Monetary Policy Rate (MPR) unchanged at 26.5 per cent;
- Standing Lending and Deposit Facilities Corridor at +50/-450 basis points around the MPR;
- Cash Reserve Ratio (CRR) for Deposit Money Banks at 45 per cent;
- CRR for Merchant Banks at 16 per cent; and
- CRR on non-TSA public sector deposits at 75 per cent.
The continued growth in private sector lending suggests banks remain willing to finance businesses despite the high-interest-rate environment.
Analysts say stronger business confidence, coupled with growing calls for banks to allocate more funds to productive sectors rather than government securities, could sustain the upward trend in private sector credit in the coming months.
