Nigeria's Private-Sector Credit Falls by N10.31 Trillion

Between January and July 2026, Nigeria's private-sector credit fell by N10.31 trillion, according to data from the Central Bank of Nigeria (CBN). The credit decreased from N93.74 trillion at the beginning of the year to N83.43 trillion by July, marking an approximate decline of 11%.

The credit briefly peaked at N94.61 trillion in February before dropping to N80.5 trillion in April. A partial recovery occurred, with figures rising to N81.04 trillion in May, N83.2 trillion in June, and N83.43 trillion in July.

Year-on-year, credit to the private sector was 9.21% higher than the N76.72 trillion recorded in July 2025, indicating that the contraction is specific to 2026. This decline follows significant investment in the banking sector, where 33 lenders raised N4.65 trillion under the CBN's recapitalisation programme.

President Bola Ahmed Tinubu addressed the situation at the 19th Annual Banking and Finance Conference of the Chartered Institute of Bankers, urging banks to focus on productive economic activities. Financial expert Prof. Adebayo Adams attributed the decline to high borrowing costs and concerns over non-performing loans.