Private sector credit falls ₦537.6 billion in September but still up 15.7% a year

ABUJA, Nigeria — Credit to Nigeria’s private sector fell to ₦83.93 trillion in September 2026, down from ₦84.47 trillion in August, according to data released by the Central Bank of Nigeria (CBN). The monthly decline of about ₦537.6 billion is a fall of 0.64%.

Private sector credit remains higher than the ₦72.53 trillion recorded a year earlier, a year-on-year increase of about 15.7%.

Recent trend

Private sector credit rose from ₦75.83 trillion in December 2025 to ₦93.74 trillion in January 2026, then reached ₦94.61 trillion in February. It fell to ₦80.73 trillion in April before recovering to ₦83.60 trillion in July and ₦84.47 trillion in August. The September decline followed.

The data do not show whether the fall reflects weaker loan demand, tighter lending conditions, repayments or other factors.

Rate cuts and lending conditions

The CBN cut its Monetary Policy Rate (MPR) by 350 basis points to 23% at its 307th Monetary Policy Committee (MPC) meeting in September 2026, the largest reduction since December 2006. The committee kept the Cash Reserve Requirement (CRR) for commercial banks at 45%, the CRR for merchant banks at 16%, and the 75% requirement on non-Treasury Single Account public-sector deposits.

Lower benchmark rates can reduce borrowing costs over time, but the effect on actual lending depends on banks’ funding costs, risk assessments and borrowers’ ability to repay. The MPR had been held at 26.5% at the July 2026 meeting.

Manufacturing and consumer lending

Business groups have raised concerns about access to credit. The Manufacturers Association of Nigeria (MAN) has reported that bank credit to manufacturing fell by ₦1.92 trillion, from ₦8.53 trillion in December 2024 to ₦6.61 trillion in December 2025.

Consumer credit also weakened. Outstanding consumer credit fell 19.89% to ₦3.78 trillion in 2025, the first annual decline since December 2019.

The Centre for the Promotion of Private Enterprise (CPPE) has cautioned the CBN against further rate hikes, arguing that tighter monetary conditions could add pressure on businesses and households.

For businesses, access to credit affects working capital, equipment purchases and expansion plans, so both the overall stock of private credit and lending by sector are worth tracking.