Private Sector Borrowing Rises by N380bn After Rate Cut

In February 2026, private sector borrowing in Nigeria rose by N380.85 billion, reaching N75.62 trillion, following the Central Bank of Nigeria's decision to cut the monetary policy rate by 50 basis points to 26.5%. This increase represents a 0.51% month-on-month rise, indicating a slight improvement in lending conditions amidst tight monetary conditions.

The data shows that net domestic credit rose from N109.43 trillion in January to N111.40 trillion in February 2026, marking an increase of N1.97 trillion or 1.80%. However, compared to February 2025, private sector credit declined from N76.26 trillion to N75.62 trillion, a decrease of N635.20 billion or 0.83%.

The Central Bank's rate cut is seen as a response to sustained pressure on businesses, although the overall monetary policy stance remains tight due to a cash reserve ratio of 45%. Adewale Oyerind, Director General of the Nigeria Employers Consultative Association, noted that while the rate cut is welcomed, it may not immediately translate to significantly lower lending rates.