Nigeria Private Credit Hits N94.6tn Record as Gov Borrowing Soars
Elijah TobsBy Elijah Tobs
Finance
May 7, 2026 • 9:40 AM
4m4 min read
Source: Pexels
The Core Insight
Central Bank of Nigeria data shows private sector credit surging to a record N94.61 trillion in February 2026 from N93.74 trillion in January, while net claims on government climbed to N39.36 trillion. This synchronized growth contrasts 2025's tight liquidity and range-bound trends, with CPS expanding N18.35 trillion YoY and government credit up N12.25 trillion, signaling broad balance sheet expansion.
As the founder and primary investigative voice at Kodawire, Elijah Tobs brings over 15 years of experience in dissecting complex geopolitical and financial systems. His work is centered on the ethical governance of emerging technologies, the shifting architectures of global finance, and the future of pedagogy in a digital-first world. A staunch advocate for high-fidelity journalism, he established Kodawire to be a sanctuary for deep-dive intelligence. Moving away from the ephemeral nature of modern headlines, Kodawire delivers permanent, verified insights that challenge the status quo and empower the global reader.
Private Sector Credit Hits Record N94.6tn as Government Borrowing Climbs to N39.4tn
Nigeria's credit expansion visualized through currency and data trends (Credit: ismail seghosime via Pexels)
The Central Bank of Nigeria (CBN) has confirmed that private sector credit has risen to N94.61 trillion, while government borrowing has risen to N39.36 trillion in February 2026.
CBN monetary data shows a synchronised expansion in system-wide credit, with February 2026 figures indicating dual acceleration in claims on the private sector and government, suggesting broad-based balance sheet expansion rather than the traditional crowding-out dynamic.
Credit to the private sector (CPS) rose to an all-time high of N94.61 trillion in February 2026, from N93.74 trillion in January. Net claims on government increased to N39.36 trillion, up from N37.87 trillion in January.
On a 12-month basis, CPS has expanded by N18.35 trillion from N76.26 trillion in February 2025, while credit to government has risen by N12.25 trillion from N27.11 trillion. This reflects significantly faster absolute expansion in private sector credit alongside structurally elevated government borrowing, pointing to a concurrent credit cycle. For insights into related credit and wealth-building strategies, see how Nigerians are adapting.
Key metrics from CBN's 2025-2026 credit data (Credit: RDNE Stock project via Pexels)
The trajectory of CPS in 2025 showed a range-bound pattern characterised by tight liquidity conditions, elevated policy rates, and risk aversion, which constrained real credit expansion:
Month (2025)
Private Sector Credit (N trillion)
January
77.38
February
76.26
March
75.98
April (Peak)
78.07
May
77.97
June
76.13
July
76.72
August
75.88
September (Low)
72.53
October
74.41
November
74.63
December
75.83
2026 Surge Represents Structural Break
The jump to N93.74 trillion in January 2026 and N94.61 trillion in February suggests improved liquidity conditions, balance sheet reallocation, and stronger demand for credit from corporates. This aligns with broader economic pushes like Nigeria's $500M research fund for growth.
2026 private sector credit structural break in data visualization (Credit: Jess Loiterton via Pexels)
2025 Government Credit: Gradual Rise with Volatility
Credit to government followed a more gradual but persistent upward trajectory, with notable volatility:
Month (2025)
Government Claims (N trillion)
January
25.03
February
27.11
March
24.59
April
23.93
May
22.99
June (Low)
21.66
July
23.69
August
22.95
September
24.16
October
24.79
November
26.35
December
34.22
The upward trend extended into 2026, with January at N37.87 trillion and February at N39.36 trillion, indicating sustained sovereign demand for bank financing. Such trends echo regulatory scrutiny in lending practices.
Government borrowing volatility from 2025 data (Credit: Markus Winkler via Pexels)
