Bank Loans to Nigerian Government Surge by N15.66tr in 12 Months – CBN Data

Data from the Central Bank of Nigeria shows that bank lending to the federal government jumped from ₦23.93 trillion in April 2025 to ₦39.60 trillion by April 2026. This ₦15.66 trillion increase made up about 86% of new domestic credit over the period. During the same year, total credit in the economy rose from ₦102.00 trillion to ₦120.18 trillion, but only ₦2.52 trillion of that went to the private sector. Private sector loans edged up from ₦78.07 trillion to ₦80.59 trillion and even showed declines in some months, suggesting tighter access to finance for businesses. Government credit now accounts for 32.95% of total domestic lending, up from 23.46% a year earlier. The CBN also cut its Monetary Policy Rate to 26.5% during this period, but banks still favour government securities over private loans. This shift in credit allocation could hamper business growth and job creation if banks continue to channel most new funds into government borrowing rather than supporting the private sector.

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