Nigerian Banks Optimistic for Lending Growth in 2026 Amid Easing Inflation and FX Pressures

Nigerian banks are poised for a resurgence in lending activities in 2026 as inflation and foreign exchange challenges begin to alleviate. The banking sector is showing signs of recovery after a prolonged credit slowdown, with the Central Bank of Nigeria reporting a modest increase in credit to the private sector.

Despite improved liquidity and a rise in net foreign assets, lending growth remains subdued. FBNQuest Merchant Bank predicts a shift towards expanding loan portfolios and capital bases rather than holding idle funds.

This shift is expected to support economic recovery and business expansion in key sectors like manufacturing, trade, and agriculture.