(CBN Governor, Olayemi Cardoso. Photo by Punch News)
According to recent data from the Central Bank of Nigeria (CBN), credit to the Federal Government increased by N17.39 trillion, or 75.6%, year over year, from N22.99 trillion in May 2025 to N40.38 trillion in May 2026.
From N39.60 trillion in April to N40.38 trillion in May 2026, the government’s borrowing increased by N779.7 billion in just one month.
The government’s growing reliance on domestic debt to finance fiscal operations is reflected in the CBN data showing that commercial and merchant banks continue to move significant amounts into Treasury Bills and Federal Government bonds.
Private sector credit, on the other hand, increased only slightly from N80.59 trillion in April to N81.04 trillion in May.
Private sector lending continued to be around twice as large as government credit, notwithstanding the reduced rate.
Economists caution that the banking industry’s increasing inclination for government assets may push out private companies by restricting access to reasonably priced financing, which could impede investment and economic expansion.
A sectoral breakdown of private sector lending for the time period has not yet been released by the CBN.
