CBN Reports N15.66 Trillion Government Lending Surge

The Central Bank of Nigeria (CBN) reported that banks extended N15.66 trillion in credit to the government within one year, indicating a growing reliance on public sector borrowing despite weaker growth in private sector credit. As of April 2026, total government borrowing reached N39.60 trillion, up from N23.93 trillion in April 2025, marking a 65.44% year-on-year increase.

The overall domestic credit rose from N102.00 trillion in April 2025 to N120.18 trillion in April 2026, an increase of N18.18 trillion, with government borrowing contributing significantly to this rise. In contrast, private sector credit increased only by N2.52 trillion, from N78.07 trillion to N80.59 trillion.

The CBN's monetary policy committee recently cut the benchmark interest rate, which coincided with a slight rise in government credit. The report indicates that banks are increasingly allocating credit to the government while private sector lending remains under pressure.