Net Domestic Credit Rises 20% Year-on-Year
Credit to Nigeria’s private sector rose to ₦81.04 trillion in May 2026, up slightly from ₦80.59 trillion in April, according to new data from the Central Bank of Nigeria (CBN).
The figures show resilience in lending activity despite the CBN’s tight monetary stance aimed at curbing inflation.
Net domestic credit also climbed to ₦121.42 trillion, while net other assets increased to ₦12.63 trillion.
Year-on-year, private sector credit grew 3.9% from ₦77.97 trillion in May 2025, while net domestic credit expanded 20.3% from ₦100.96 trillion. Net other assets surged 52.2% compared with ₦8.29 trillion a year earlier.
At its 305th Monetary Policy Committee (MPC) meeting in May, the CBN retained the Monetary Policy Rate at 26.50%, keeping other parameters unchanged to sustain disinflation and macroeconomic stability.
Analysts say the policy stance reflects efforts to contain inflation while supporting growth, but note that high borrowing costs, exchange rate volatility, and banks’ preference for government securities continue to limit stronger credit expansion.
The Centre for the Promotion of Private Enterprise (CPPE) has warned that structural weaknesses in Nigeria’s credit ecosystem restrict financing to productive sectors, undermining industrialisation and job creation.
Broad money supply (M3) also rose to ₦129.21 trillion in May, up from ₦124.99 trillion in April. Yet, according to the African Development Bank (AfDB), private sector credit remains just 9.4% of GDP, highlighting limited access to long-term financing.
Experts argue that while credit growth is positive, deeper reforms are needed to improve financial intermediation and channel more funds into sectors that can drive sustainable economic growth.