Nigeria’s private sector credit grew to a new high of N81.04 trillion in May 2026, according to the latest data released by the Central Bank of Nigeria (CBN).
The figure represents an increase from N80.59 trillion recorded in April, showing continued resilience in lending activity even as the apex bank maintained its tight monetary stance to combat inflation.
Net domestic credit also rose to N121.42 trillion in May from N120.18 trillion the previous month, while net other assets increased to N12.63 trillion from N11.88 trillion.
Year-on-Year Growth Remains Positive
On a year-on-year basis, private sector credit expanded by 3.9% from N77.97 trillion in May 2025. Net domestic credit recorded a stronger 20.3% growth, while net other assets surged by 52.2% over the same period.
The sustained expansion in credit comes at a time when borrowing costs remain elevated due to the CBN’s restrictive policy measures.
MPC Holds Rates Steady
At its 305th Monetary Policy Committee (MPC) meeting held on May 19–20, 2026, the CBN unanimously decided to retain the Monetary Policy Rate at 26.50% and kept all other key parameters unchanged. The decision was aimed at sustaining the disinflation process and preserving macroeconomic stability.
Mixed Signals for the Economy
Analysts note that while private sector credit has continued to grow, the pace remains moderate amid high interest rates, exchange rate pressures, and banks’ preference for investing in relatively safer government securities.
The latest figures suggest that despite the challenging operating environment, some segments of the economy are still accessing financing. However, broader uncertainties including inflation, currency volatility, and tight liquidity conditions continue to shape lending behaviour.
The CBN has not yet released a detailed sectoral breakdown for May, but the overall growth in private sector credit indicates that the financial system is still supporting economic activity, albeit cautiously, as policymakers balance the need for price stability with the demand for growth.
