Private sector gets N2.2 trillion credit in 30 days, says CBN

Private sector secured loans worth N2.22 trillion in 30 days ended June 30, the Central Bank of Nigeria (CBN) economic data for the month has shown. Credit to Nigeria’s private sector rose to N83.26 trillion in June 2026 from N81.04 trillion in May, signifying a positive balance of N2.22 trillion month-on-month.

Year-on-year growth and government credit trends

Year-on-year, the figure represents a nine per cent increase compared with the N76.13 trillion recorded in June 2025. The CBN data shows that credit to Nigeria’s private sector increased by approximately 2.74 per cent month-on-month between May and June 2026.

Also, the CBN data noted that credit to the government fell slightly to N40.03 trillion from N40.38 trillion. Other assets, net, dropped to N10.76 trillion from N12.63 trillion.

Banks keep lending despite tight policy

The credit surge signifies sustained growth in lending to businesses and other private-sector borrowers during the month. The rise in private sector credit was recorded alongside an increase in net domestic credit, despite declines in credit to government and other assets.

Further analysis of the report says that compared with June 2025, private sector credit rose by about N7.13 trillion year-on-year but net domestic credit increased by approximately N1.87 trillion during the month. The CBN’s relatively tight monetary policy stance notwithstanding, more banks still loaded funds to the private sector within the period.

MPC holds rates, credit outlook remains positive

The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) held its 306th meeting on July 20 and 21. The Committee reviewed recent developments in the global and domestic economies, assessed emerging risks to the outlook and considered their implications for monetary policy and retained all rates. The Committee decided to retain the Monetary Policy Rate at 26.5 per cent; the Standing Facilities Corridor around the MPR at +50/-450 basis points and retain the Cash Reserve Requirement (CRR) for Deposit Money Banks at 45.00 per cent, Merchant Banks at 16.00 per cent, and non-TSA public sector deposits at 75.00 per cent.

The MPC decision means that credit extension in the private sector will likely continue to rise because of rising confidence in the sector and calls by stakeholders for banks to invest in the private sector instead of government securities.

For Nigerian businesses, this sustained credit growth signals improved access to capital, which could support expansion and job creation. For the naira, the trend may ease pressure if the funds are directed into productive sectors that boost exports or reduce imports.