Credit extended to the Nigerian government rose 63.09% year-on-year to N39.40 trillion in September 2026, while lending to the private sector recorded a marginal monthly decline, according to the Central Bank of Nigeria's Money and Credit Statistics.
The CBN figures show government credit climbed by N15.24 trillion within 12 months, from N24.16 trillion in September 2025. The increase accelerated in September, when credit to government rose by N6.36 trillion from N33.04 trillion in August, a monthly expansion of 19.26%.
The September jump reversed a three-month decline. Previously published CBN data showed credit to government falling to N33.99 trillion in July and N33.04 trillion in August 2026.
Net domestic credit, which captures credit to government and the private sector alongside other components, increased 4.96% month-on-month to N123.34 trillion from N117.51 trillion. On an annual basis, the measure rose by N26.65 trillion, or 27.56%, from about N96.69 trillion in September 2025.
Government credit was the larger contributor to that expansion. The N15.24 trillion increase in government credit accounted for roughly 57.2% of the annual growth in net domestic credit, while the N11.41 trillion rise in private-sector credit represented about 42.8%.
By contrast, credit to the private sector slipped 0.64% to N83.93 trillion in September from N84.47 trillion in August, a reduction of about N537.61 billion in one month. Year-on-year, private-sector credit remained 15.73% higher than the N72.53 trillion recorded in September 2025.
Broad money supply, measured by M3, rose to N146.60 trillion in September 2026 from N117.78 trillion a year earlier, representing annual growth of 24.47%.
The data indicate that while system liquidity continues to expand, a growing share of available credit is being channelled toward financing public-sector activities at a time when businesses face elevated borrowing costs and tighter financial conditions. For policymakers, the challenge will be ensuring that liquidity growth supports productive economic activity rather than simply financing fiscal deficits. For businesses, access to affordable credit remains the key concern as government demand for financing continues to expand.
