Banks Redirect Credit Flow as Agriculture Accounts for N3.86tn, Oil and Gas Exposure Declines By N335bn
Festus Akanbi Nigerian banks are steadily redirecting credit towards agriculture and other emerging areas of the economy, with lending to the agricultural sector rising to N3.86 trillion in March 2026.
Nigerian banks are redirecting credit towards agriculture and other emerging sectors, while exposure to oil and gas declines. In March 2026, lending to agriculture reached N3.86 trillion, up N150 billion from January. Meanwhile, credit to oil and gas fell by N335 billion, from N10.91 trillion to N10.58 trillion. This shift reflects the banks' recalibration of portfolios amid high interest rates, inflation, and exchange-rate volatility.
Agriculture, struggling with financing constraints, production costs, insecurity, poor infrastructure, and limited mechanisation, stands to benefit from increased bank credit. However, manufacturing, power, and real estate experienced declines in lending, highlighting financing pressures across various sectors. Overall, private-sector credit increased from N57.41 trillion to N59.74 trillion, indicating a broader reshuffling of credit. Government borrowing also rose, climbing from N34.19 trillion to N35.77 trillion.
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