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Credit extended to Nigeria’s private sector increased to N83.3 trillion in June 2026, reflecting sustained lending activity despite the Central Bank of Nigeria’s (CBN) tight monetary policy stance.
According to the latest Money and Credit Statistics released by the apex bank, private sector credit rose by 2.8 per cent month-on-month, from N81 trillion in May to N83.3 trillion in June. The increase highlights continued access to financing for businesses and households even as interest rates remain elevated.
The report also showed that credit to the government declined slightly by 0.99 per cent, falling from N40.4 trillion in May to N40 trillion in June.
As a result of the stronger private sector lending, net domestic credit increased by 1.5 per cent, rising to N123.3 trillionin June from N121.42 trillion recorded in the previous month.
The latest figures suggest that financial institutions continued to channel more funds to productive sectors of the economy, supporting business operations, investment activities and household financing despite prevailing borrowing costs.
The expansion in private sector credit comes at a time when the CBN continues to pursue a restrictive monetary policy aimed at moderating inflation and maintaining macroeconomic stability. While higher interest rates are designed to curb excessive liquidity, the latest data indicates that demand for credit remains resilient.
Analysts note that sustained growth in private sector lending could stimulate economic activity by enabling businesses to expand operations, invest in productive assets and create employment opportunities. However, they also caution that rapid credit expansion, if not matched by increased productive output, could contribute to inflationary pressures.
The June figures underscore the balancing act facing monetary authorities as they seek to contain inflation while ensuring that adequate financing remains available to support private sector growth and broader economic development.
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