Nigeria Private Credit Hits N94.6tn Record as Gov Borrowing Soars
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Private Sector Credit Hits Record N94.6tn as Government Borrowing Climbs to N39.4tn
(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.
(Credit: RDNE Stock project via Pexels)
2025 Private Sector Credit: Range-Bound Amid Tight Conditions
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.
(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.
(Credit: Markus Winkler via Pexels)
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Elijah Tobs
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