Private sector credit hits N81.04 trillion in May despite tight CBN policy
By Aboki Forex —
Credit to Nigeria's private sector rose to N81.04 trillion in May 2026, up from N80.59 trillion in April. This happened even as the Central Bank of Nigeria kept its tight monetary policy in place to fight inflation.
Latest CBN data shows net domestic credit increased to N121.42 trillion in May from N120.18 trillion in April. Net other assets also climbed to N12.63 trillion from N11.88 trillion during the same period.
The numbers suggest lending stayed resilient despite high borrowing costs across the economy.
What the data is saying
Private sector credit rose 3.9% year-on-year to N81.04 trillion in May 2026 from N77.97 trillion in May 2025. Net domestic credit jumped 20.3% to N121.42 trillion from N100.96 trillion a year earlier. Net other assets surged 52.2% to N12.63 trillion from N8.29 trillion.
The CBN has not yet released a sectoral breakdown of private sector credit for May 2026. The figures point to continued credit growth despite tough macroeconomic conditions and tight financial settings.
Context
The rise in private sector credit comes as the CBN tries to balance inflation control with support for economic growth. At its 305th Monetary Policy Committee meeting held on May 19-20, 2026, the CBN unanimously kept the Monetary Policy Rate at 26.50%. It also held all other key policy parameters steady to sustain disinflation and preserve stability.
Analysts said the policy stance reflects the CBN's efforts to contain inflation while supporting economic activity. But they noted that high borrowing costs, exchange rate volatility, and banks' preference for government securities continue to limit stronger credit growth. Analysts added that while credit growth remains positive, broader macroeconomic uncertainties persist.