NEWS
Private Sector Credit Climbs To ₦81.04trn In May As Lending Holds Up Under Tight CBN Policy
Private Sector Credit Climbs To ₦81.04trn In May As Lending Holds Up Under Tight CBN Policy
June 23 () — Credit to Nigeria’s private sector rose to ₦81.04 trillion in May 2026, highlighting the resilience of lending activity despite the Central Bank of Nigeria’s (CBN) continued tight monetary policy to curb inflation.
According to the latest monetary statistics released by the CBN, private sector credit increased from ₦80.59 trillion recorded in April 2026. The data also showed that net domestic credit grew to ₦121.42 trillion in May from ₦120.18 trillion in the preceding month, while net other assets rose to ₦12.63 trillion from ₦11.88 trillion over the same period.
The figures suggest that banks continued to extend credit to businesses and households even as borrowing costs remained elevated across the economy.
On a year-on-year basis, private sector credit expanded by 3.9 percent, rising from ₦77.97 trillion in May 2025 to ₦81.04 trillion in May 2026. Net domestic credit recorded a stronger growth rate of 20.3 percent, increasing from ₦100.96 trillion a year earlier to ₦121.42 trillion. Net other assets also posted significant growth, climbing by 52.2 percent from ₦8.29 trillion in May 2025.
The CBN has yet to publish a sectoral breakdown of private sector lending for May, making it difficult to determine which industries accounted for the latest increase in credit.
The growth in lending comes against the backdrop of the CBN’s efforts to strike a balance between controlling inflation and supporting economic activity. At its 305th Monetary Policy Committee (MPC) meeting held on May 19–20, 2026, the apex bank retained the Monetary Policy Rate (MPR) at 26.5 percent and left other key policy parameters unchanged.
Analysts say the decision reflects the bank’s commitment to sustaining disinflation and preserving macroeconomic stability.
However, they note that high borrowing costs, exchange-rate volatility and banks’ preference for government securities continue to limit stronger credit expansion and affordable financing for businesses.
