Bank lending to private sector hits N81 trillion in May

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Nigerian bank loans to the private sector rose slightly to N81.041 trillion in May 2026. That is a 0.56% increase from N80.585 trillion in April, according to the Central Bank of Nigeria (CBN).

The growth marks a recovery after a decline in the previous month. It shows a modest improvement in borrowing by businesses and households. But credit levels remain below earlier peaks.

The May figure is 14.34% lower than the record N94.610 trillion recorded in February 2026. It is also below the N93.743 trillion reported in January. However, it is higher than the N75.834 trillion recorded in December 2025.

Government borrowing also rises

CBN data shows credit to the government increased as well. Government borrowing from banks rose to N40.378 trillion in May from N39.599 trillion in April. That is a 1.97% increase.

Government credit stood at N39.359 trillion in February, N37.867 trillion in January, and N34.221 trillion in December 2025.

Total domestic credit, which includes all lending within the economy, rose by 1.03% to N121.420 trillion in May. That is up from N120.184 trillion in April. But it remains below the N133.969 trillion recorded in February and N131.611 trillion in January.

Cash outside banks hits record high

Cash held outside the banking system climbed to a record N5.193 trillion in May. That is a 2.16% increase from N5.083 trillion in April. It slightly surpassed the previous record of N5.188 trillion in February.

The rise suggests many Nigerians still prefer to hold physical cash. This is despite regulatory efforts to boost financial inclusion and electronic payments.

Currency in circulation also increased by 0.76% to N5.689 trillion in May.

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