Nigeria's Government Credit Drops to N32.7 Trillion in August

In August 2026, credit to the government in Nigeria declined to N32.7 trillion, continuing a downward trend for the third consecutive month, according to data from the Central Bank of Nigeria (CBN). This figure decreased from N40.03 trillion in June and N33.92 trillion in July.

Meanwhile, credit to the private sector increased to N84.55 trillion, up from N83.43 trillion in July and N83.26 trillion in June, although it remains below the N94.61 trillion recorded in February 2026. Financial economist Akeen Yusuf suggested that the decline in government credit could indicate a rebalancing of credit allocation, while Dr Olu Olajemgbesi noted the impact of government borrowing on private-sector lending.

The overall net domestic credit also fell from N123.29 trillion in June to N117.25 trillion in August. The CBN data did not clarify the reasons behind the decline in government credit, which could stem from lower borrowing, debt repayments, or other factors.