CBN data shows businesses and households accessed more loans despite tight monetary policy environment…….
Credit extended to Nigeria’s private sector increased to N83.3tn in June 2026, reflecting continued growth in bank lending to businesses and households despite the Central Bank of Nigeria’s 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 N81tn recorded in May.
The data also showed a slight decline in government borrowing during the period, with credit to the public sector falling by 0.99 per cent to N40tn in June from N40.4tn in the previous month.
As a result, total net domestic credit increased by 1.5 per cent, rising to N123.3tn in June compared with N121.42tn recorded in May.
The rise in private sector lending indicates that financial institutions continued to provide more funding to companies and individuals, even as the CBN maintained higher interest rates as part of efforts to control inflation and stabilise the economy.
Analysts said sustained growth in credit access could support business expansion, investment and broader economic activity by improving funding availability for productive sectors.
However, they warned that rapid credit expansion could also increase inflationary pressures if lending growth outpaces the economy’s ability to produce goods and services.
The latest figures suggest that demand for financing remains strong among businesses and households, highlighting continued appetite for credit despite the challenging cost of borrowing environment.
The CBN’s monetary policy direction remains focused on balancing economic growth with inflation control, as policymakers monitor the impact of increased lending on price stability and overall economic performance.
