Credit to Nigeria's private sector edged higher in May 2026, reaching N81.04 trillion, according to the latest monetary statistics from the Central Bank of Nigeria. The figure represents a modest increase from the N80.59 trillion recorded in April, suggesting that lending activity has held up despite the CBN's restrictive monetary policy posture.
Net domestic credit rose to N121.42 trillion in May, up from N120.18 trillion in the prior month, while net other assets increased to N12.63 trillion from N11.88 trillion over the same period.
On a year-on-year basis, private sector credit expanded by 3.9%, compared with N77.97 trillion recorded in May 2025. Net domestic credit climbed 20.3% from N100.96 trillion a year earlier, and net other assets surged 52.2% from N8.29 trillion. The CBN has not yet released a sectoral breakdown of private sector credit allocations for May 2026.
The credit expansion comes against the backdrop of the CBN's 305th Monetary Policy Committee meeting held on May 19–20, 2026, where the committee unanimously voted to retain the Monetary Policy Rate at 26.50%. All other key monetary policy parameters were also held steady as the apex bank continues to prioritise disinflation and macroeconomic stability.
Analysts have noted that while the policy pause reflects the CBN's effort to balance inflation control with growth support, elevated borrowing costs, exchange rate volatility, and banks' continued preference for government securities remain significant constraints on stronger credit expansion.
The Centre for the Promotion of Private Enterprise has previously flagged structural weaknesses in Nigeria's credit ecosystem, warning that financing remains restricted for productive sectors capable of driving industrialisation and job creation.
Nairametrics recently reported that Nigeria's broad money supply rose to N129.21 trillion in May 2026 from N124.99 trillion in April. According to the African Development Bank, credit to Nigeria's private sector stands at just 9.4% of Gross Domestic Product, underscoring the difficulty businesses face in accessing long-term financing.
Experts maintain that deeper structural reforms to improve financial intermediation will be required to meaningfully expand access to credit and support sustainable economic growth.
