PRIVATE SECTOR CREDIT RISES TO N83.43TN

Credit to Nigeria’s private sector rose to N83.43tn in July 2026 despite the continued high cost of borrowing and the Central Bank of Nigeria’s tight monetary policy.

Data from the CBN showed that private-sector credit increased by N171.8bn, or 0.21 per cent, between June and July. The figure was also N6.70tn higher than the N76.72tn recorded in July 2025, representing an 8.74 per cent annual increase.

The latest increase extended the steady growth in lending recorded in recent months. Between April and July, credit to private businesses and other borrowers increased by N2.84tn, from N80.59tn to N83.43tn.

However, the pace of growth slowed in July after credit expanded by N2.22tn between May and June. The slowdown came as the CBN maintained its Monetary Policy Rate at 26.50 per cent as part of efforts to control inflation and support economic stability.

The rise in private-sector lending suggests that businesses continue to seek financing despite elevated interest rates. However, business groups have warned that expensive credit could increase operating costs and limit access to funding.

Meanwhile, net domestic credit fell by N5.94tn to N117.35tn in July, while government borrowing from the domestic market also declined during the month.

The CBN data did not provide a sector-by-sector breakdown of the new private-sector loans, making it unclear which areas of the economy accounted for the increase.