Nigerian bank lending to the private sector rose marginally to N81.041 trillion in May 2026, marking a 0.56% increase from N80.585 trillion in April, according to data from the Central Bank of Nigeria (CBN). This recovery follows a decline in the previous month, indicating a modest improvement in borrowing by businesses and households, although credit levels remain below earlier peaks.
Private Sector Credit Rebounds but Below February Record
Despite the rebound, private sector credit remained 14.34% below the record N94.610 trillion recorded in February 2026 and lower than the N93.743 trillion reported in January. However, the latest figure was higher than the N75.834 trillion recorded in December 2025, as reported by Leadership.
Government Credit Continues to Rise
CBN data also showed that credit to the government increased by 1.97% to N40.378 trillion in May from N39.599 trillion in April. Government credit stood at N39.359 trillion in February, N37.867 trillion in January, and N34.221 trillion in December 2025. Consequently, domestic credit, representing total credit extended within the economy, increased by 1.03% to N121.420 trillion in May from N120.184 trillion in April. This figure, however, remained below the N133.969 trillion recorded in February and N131.611 trillion in January.
Cash Outside Banks Hits Record High
Meanwhile, cash held outside the banking system climbed to a record N5.193 trillion in May, rising by 2.16% from N5.083 trillion recorded in April. The amount slightly surpassed the previous record of N5.188 trillion recorded in February. The increase suggests that many Nigerians continue to hold more cash outside the banking system despite regulatory efforts to expand financial inclusion and encourage electronic payment adoption. Further CBN data showed that currency in circulation increased by 0.76% to N5.689 trillion in May from N5.646 trillion in April. Currency in circulation stood at N5.709 trillion in February, N5.731 trillion in January, and N5.732 trillion in December 2025.
CBN’s Foreign Reserves Exceed Target
Earlier, Legit.ng reported that Nigeria's external reserves increased to $51.06 billion, exceeding the CBN's year-end target of $51.04 billion. The reserves gained 32.62% compared to $38.50 billion in the same period in 2025. The current reserve level provides the CBN with the buffer to support the naira and settle international obligations.
