Nigeria’s Bank Lending to Private Sector Hits Record N94.6trn, Surges by N18trn in One Year

Credit extended by Nigeria’s banking industry to the private sector reached an all-time high of N94.61 trillion in February 2026, according to new data from the Central Bank of Nigeria (CBN).

This marks a steady monthly increase from N93.74 trillion in January 2026, reflecting growing financial institution exposure to the real economy.

Over the 12 months leading to February 2026, lending to private businesses expanded by more than N18 trillion, rising from N76.26 trillion in February 2025.

According to Business a.m., the trend signals stronger credit appetite and potentially rising demand from firms navigating inflationary pressures and currency volatility.

Looking back at 2025, credit peaked at N78.07 trillion in April before experiencing volatility: a dip to N76.13 trillion in June, a low of N72.53 trillion in September blamed on tighter financial conditions and cautious bank risk strategies then a recovery in the final quarter.

The rebound set the stage for the sharp expansion seen in early 2026.

Meanwhile, government borrowing also climbed steadily, reaching N39.36 trillion in February 2026, up from N37.87 trillion in January and significantly higher than N27.11 trillion in February 2025.

After mid-2025 fluctuations, government credit accelerated sharply from November onward, hitting N34.22 trillion by December 2025.

The twin rise in private and government credit presents a mixed outlook: more business lending supports growth, but rising government borrowing could intensify competition for funds, potentially affecting interest rates and credit availability.

Analysts say the sustainability of this expansion hinges on macroeconomic stability, inflation trends, and regulatory policies in the months ahead.