Private sector borrowing rises despite high interest rates
Nigeria’s private sector credit reached N83.43tn in July 2026, continuing its upward trend even as the Central Bank of Nigeria maintains a tight monetary policy. Data shows a steady increase in lending to businesses, with a notable annual rise compared to the previous year. While private sector borrowing grew, government demand for domestic credit declined during the same period. The sectoral breakdown of the latest credit increase remains unclear due to limited data.
TLDR
- Private sector credit rose to N83.43tn in July 2026, up N6.70tn from the previous year.
- Credit increased by 0.21% between June and July 2026, following a larger N2.22tn expansion in June.
- From April to July 2026, private sector credit grew by N2.84tn, moving from N80.59tn to N83.43tn.
- Net domestic credit fell by N5.94tn to N117.35tn in July 2026, with government borrowing dropping from N40.03tn to N33.92tn.
- The Central Bank’s high interest rates have not stopped the rise in private sector lending, but concerns remain about the cost of borrowing for businesses.
