Private Sector Credit Rises to ₦84.55tn as Business Financing Expands

By GLEBM News Desk

Credit extended to Nigeria’s private sector rose to ₦84.55 trillion in August 2026, pointing to continued expansion in bank financing even as businesses continue to contend with elevated borrowing costs and difficult operating conditions.

Data from the Central Bank of Nigeria showed that private-sector credit increased by ₦1.13 trillion during the month, representing a 1.35 per cent rise from the ₦83.43 trillion recorded in July.

The latest increase also represents an 11.42 per cent rise compared with the ₦75.88 trillion recorded in August 2025, indicating that the volume of credit available to businesses and other private-sector operators has expanded significantly over the past year.

The figures provide an important measure of the changing flow of finance within the Nigerian economy, particularly for companies that depend on bank lending to fund working capital, investment, inventory purchases and business expansion.

However, the August figure remains below the ₦94.61 trillion recorded in February 2026, suggesting that the recovery in private-sector lending has not been uniform throughout the year.

The latest data also showed a decline in credit extended to government. Credit to the public sector fell to ₦32.70 trillion in August from ₦33.92 trillion in July, representing a monthly decline of ₦1.22 trillion, or 3.60 per cent.

Compared with earlier months, government borrowing from the domestic financial system has also declined considerably. Credit to government stood at ₦40.03 trillion in June and ₦40.38 trillion in May, placing the August figure more than ₦7 trillion below the June level.

The movement in private and government credit comes against the backdrop of the Central Bank’s continuing efforts to influence liquidity, inflation and credit conditions through monetary policy.

Total net domestic credit stood at ₦117.25 trillion in August, compared with ₦117.35 trillion in July and ₦123.29 trillion in June.

Meanwhile, net domestic assets increased from ₦101.07 trillion in July to ₦101.99 trillion in August.

Broad money supply also recorded an increase during the period. Money supply measured by M3 rose to ₦139.38 trillion from ₦138.78 trillion, while M2 increased marginally to ₦139.37 trillion from ₦138.77 trillion.

For businesses, the growth in private-sector credit could provide additional financing capacity, particularly if lending is directed toward productive sectors rather than short-term consumption.

Manufacturers, traders, agricultural businesses, technology companies and other enterprises have continued to identify access to affordable credit as an important factor in their ability to expand operations and create jobs.

The challenge, however, remains the cost at which such funds are available. Businesses operating with narrow margins can find it difficult to absorb high interest charges, especially when they are simultaneously dealing with elevated energy, logistics, labour and raw-material costs.

The latest credit figures therefore offer two contrasting signals for the economy: financial-sector lending to private businesses is expanding, but the overall lending environment remains shaped by monetary conditions and the cost of capital.

Sustained growth in private-sector credit will ultimately depend not only on the volume of funds available but also on whether businesses can access financing on terms that support investment, production and employment.