By Boluwatife Oshadiya | September 3, 2026
Key Points
- Private sector credit rose to N83.43 trillion in July 2026, up 8.74% from N76.72 trillion a year earlier
- Lending increased by N2.84 trillion between April and July, although monthly growth slowed sharply in July
- Credit expanded despite the Central Bank of Nigeria maintaining its Monetary Policy Rate at 26.50%
Main Story
Nigeria’s private sector credit rose to N83.43 trillion in July 2026 as bank lending continued to expand despite the Central Bank of Nigeria’s tight monetary policy stance. Latest CBN data showed that private sector credit increased by N171.8 billion, or 0.21%, between June and July, following a much stronger N2.22 trillion increase in the previous month.
The July balance was N6.70 trillion higher than the N76.72 trillion recorded in July 2025, representing an annual increase of 8.74%. Between April and July, private sector credit rose from N80.59 trillion to N83.43 trillion, a 3.52% increase.
The increase came while the CBN kept its Monetary Policy Rate at 26.50%, as policymakers continued to focus on inflation control and macroeconomic stability.
The latest data also showed weaker government borrowing. Net domestic credit fell by N5.94 trillion, or 4.82%, to N117.35 trillion in July from N123.29 trillion in June, while credit to government declined from N40.03 trillion to N33.92 trillion.
However, the CBN data do not provide a sector-by-sector breakdown of the July increase, making it difficult to determine how much of the additional lending went to manufacturing, agriculture, trade, real estate or other activities.
What’s Being Said
“The real test lies in how well the banking system supports investment, enterprise, job creation and economic transformation,” said Muda Yusuf, Chief Executive Officer, Centre for the Promotion of Private Enterprise.
The CPPE has separately warned that Nigeria’s real sector continues to face prohibitive lending rates, short loan tenors, stringent collateral requirements and limited access to patient capital.
What’s Next
The direction of private sector credit will be closely watched in subsequent CBN data, particularly as banks operate under a still-high 26.50% policy rate.
The composition of new lending will also matter, as stronger credit growth will have a greater economic impact if financing reaches productive sectors and supports investment and expansion.
Bottom Line
The Bottom Line: The rise in private sector credit shows that demand for financing remains resilient, but the sharp slowdown in July suggests that high borrowing costs may still be limiting the pace of expansion. The key issue is increasingly not just how much banks lend, but where the credit goes and at what cost.
