Credit to Nigeria’s private sector rose for the third consecutive month in August 2026 to N84.55 trillion, while credit to government fell sharply, according to the latest money and credit statistics from the Central Bank of Nigeria (CBN).
Private-sector credit increased by N1.13 trillion, or 1.35%, from N83.43 trillion in July. The July figure had risen by N171.8 billion from N83.26 trillion in June.
Since May, private-sector credit has increased by N3.51 trillion, or 4.33%, from N81.04 trillion. It had fallen from N94.61 trillion in February to N80.59 trillion in April.
Despite the recent recovery, the August figure remained N10.06 trillion below the February peak. Compared with August 2025, however, private-sector credit was up N8.67 trillion, or 11.43%, from N75.88 trillion.
Credit to government moved in the opposite direction, falling to N32.70 trillion in August from N33.92 trillion in July. The N1.22 trillion decline represented a 3.60% monthly drop.
Government credit has now fallen by N7.68 trillion, or 19.02%, from N40.38 trillion in May. It stood at N40.03 trillion in June before falling to N33.92 trillion in July.
The gap between private-sector and government credit widened to N51.85 trillion in August from N40.66 trillion in May.
The figures show that private-sector credit increased while government credit declined, but the data alone does not establish that banks redirected funds released from government lending into private-sector loans.
The increase in private-sector credit also came amid a tight monetary policy environment. The CBN’s Monetary Policy Committee retained the Monetary Policy Rate at 26.50% at its July 20-21, 2026 meeting.
The CBN’s Q2 2026 Credit Conditions Survey also showed increased demand for some categories of corporate credit, including lending to small businesses and medium-sized private non-financial corporations.
However, the growth in total private-sector credit has not been uniform across industries.
CBN sectoral data for the first quarter showed agricultural credit rising from N3.71 trillion in January to N3.86 trillion in March. Total agricultural credit for the quarter rose 23% year-on-year to N11.38 trillion from N9.29 trillion.
Manufacturing credit, however, fell from N6.57 trillion in January to N5.77 trillion in March, a decline of about N807 billion, or 12.3%. Oil and gas lending also fell from N10.91 trillion to N10.58 trillion.
Credit to power and energy increased from N1.30 trillion to N1.61 trillion, while real estate lending rose from N4.67 trillion to N6.29 trillion over the same period.
The CBN does not provide a sector-by-sector breakdown for the N84.55 trillion August private-sector credit figure in the data cited, making it difficult to determine which industries accounted for the latest increase.
Manufacturers have continued to raise concerns about borrowing costs. The Manufacturers Association of Nigeria (MAN) has cited lending rates above 35% for some borrowers and called for measures to improve access to affordable financing for manufacturers.
MAN has also called for the release of a N1 trillion Manufacturing Stabilisation Fund to support businesses facing financing constraints.
The latest figures therefore show a recovery in aggregate private-sector credit, but they do not necessarily indicate that financing conditions have improved equally across the economy. High lending costs and differences in sectoral credit allocation remain important issues for businesses seeking finance.
