Credit extended to the federal government jumped 63.1 per cent year-on-year to N39.40 trillion in September 2026, significantly outpacing the 15.7 per cent growth in lending to the private sector, according to money and credit statistics released by the Central Bank of Nigeria (CBN).
Government credit rose from N24.16 trillion in September 2025 to N39.40 trillion a year later, an increase of N15.24 trillion. Private-sector credit expanded more modestly, climbing from N72.53 trillion to N83.93 trillion over the same period, adding N11.41 trillion. The CBN figures showed that growth in government credit was approximately four times faster than private-sector credit, and the additional financing channelled to government exceeded the new credit given to businesses by N3.83 trillion.
Month-by-month data revealed volatile movements in both segments throughout the 12-month period. Government credit accelerated sharply towards the end of 2025, retreated in the middle of 2026 and then rebounded in September. Private-sector credit experienced considerable swings, rising above N94 trillion early in 2026 before falling back to the N80 trillion range. The highest level of private-sector credit in the data came in February 2026, when it reached N94.61 trillion. By April, it had fallen to N80.73 trillion, a decline of N13.88 trillion or about 14.7 per cent.
Government credit showed a more consistent upward path. It stood at N24.16 trillion in September 2025, increased to N26.35 trillion in November, jumped sharply to N34.22 trillion in December and reached N39.36 trillion in February 2026. The CBN data showed government credit remained close to that level through April 2026 before climbing further to N39.40 trillion by September.
For savers and borrowers in Nigeria, the divergence in lending patterns means government financing is consuming a rising share of available credit in the banking system, potentially affecting the funds available for business expansion and investment.