Private sector operators secured N2.22 trillion in fresh loans within 30 days ended June 30, 2026, as credit to businesses continued to expand despite the Central Bank of Nigeria’s (CBN) tight monetary policy stance.
Latest economic data released by the CBN showed that credit to the private sector rose from N81.04 trillion in May to N83.26 trillion in June 2026, representing a month-on-month increase of N2.22 trillion, or 2.74 per cent.
On a year-on-year basis, private sector credit grew by 9.4 per cent, increasing from N76.13 trillion recorded in June 2025 to N83.26 trillion.
The latest figures highlight sustained growth in bank lending to businesses and other private-sector borrowers as financial institutions continue to expand credit despite elevated interest rates.
The report also showed that credit to the Federal Government declined marginally during the period, falling from N40.38 trillion in May to N40.03 trillion in June, while other net assets dropped to N10.76 trillion from N12.63 trillion.
According to the CBN data, the increase in private sector lending occurred alongside a rise in net domestic credit, underscoring continued financial sector support for productive economic activities.
Compared with the corresponding period in 2025, lending to the private sector increased by approximately N7.13 trillion, reflecting stronger credit growth over the past 12 months.
The improvement comes despite the Central Bank’s continued tight monetary policy aimed at curbing inflation and stabilising the economy.
At its 306th Monetary Policy Committee (MPC) meeting held on July 20 and 21, the apex bank retained all key monetary policy parameters.
The MPC kept the Monetary Policy Rate (MPR) at 26.5 per cent, maintained the asymmetric corridor around the MPR at +50/-450 basis points, and retained the Cash Reserve Ratio (CRR) for Deposit Money Banks at 45 per cent, 16 per cent for Merchant Banks, and 75 per cent for non-Treasury Single Account (TSA) public sector deposits.
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The committee said the decision followed an assessment of domestic and global economic conditions as well as emerging risks to the inflation and growth outlook.
Analysts said the continued expansion in private sector credit reflects growing confidence among lenders and increasing calls for banks to channel more resources into productive sectors of the economy rather than investing heavily in government securities.
The latest figures suggest that credit to businesses could continue to rise in the coming months as banks respond to improving economic conditions and increased demand for financing by the private sector.
