Banks’ lending to private sector drops by N10trn in 7 months
Credit to Nigeria’s private sector declined by about N10.3 trillion over seven months, falling from N93.74 trillion in January to N83.43 trillion as of July this year, according to the money and credit statistics data reviewed by Daily Trust. The figures showed significant fluctuations in credit levels during the seven-month period, highlighting changes in lending […]
Over a seven-month period, bank lending to Nigeria's private sector declined by approximately N10.3 trillion, falling from N93.74 trillion in January to N83.43 trillion as of July 2026, according to the Central Bank of Nigeria (CBN). The data, which includes loans, trade credits, and other account receivables provided by banks to the private sector, showed significant fluctuations in credit levels during the seven-month period.
From January to February 2026, credit to the private sector rose to N94.6 trillion, but it subsequently declined to N80.5 trillion in April and N83.2 trillion in June before reaching N83.43 trillion in July. The contraction represents an 11% reduction year-to-date, raising concerns about the availability of financing for businesses that rely on bank credit for working capital, expansion, and investment.
Financial experts attribute the decline to banks' increasing caution due to rising non-performing loans and economic uncertainty, as well as the high cost of borrowing, which makes it challenging for businesses to expand production capacity and hire workers.
Written by urgent.news from Daily Trust's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
