Nigeria's Private Sector Credit Drops N14 Trillion in 2026

Private sector credit in Nigeria experienced a significant decline of N14 trillion, dropping from N94.61 trillion in February 2026 to N80.59 trillion by April 2026. This reduction follows the Central Bank of Nigeria's (CBN) decision to ease monetary policy earlier in February.

Despite the CBN's efforts to balance inflation control and economic growth, the latest data indicates a continued weakness in lending to the productive sector. The CBN has not published data for March 2026, leaving a gap in the reporting cycle.

The figures reveal a contraction in domestic credit conditions, despite sustained liquidity growth within the banking system. Analysts express concerns about the structural effects on Nigeria's credit system, particularly in critical sectors such as manufacturing, agriculture, and small business financing.

The modest rate cut may limit lingering macroeconomic uncertainties, elevated borrowing costs, and exchange rate pressures, leading banks to prefer investing in risk-free government securities.