Nigeria’s banking sector has recorded a historic surge in credit to the private sector, with total lending rising to an all-time high of N94.6 trillion in February 2026, reinforcing confidence in the country’s economic recovery and the growing capacity of financial institutions to support businesses and households.
Latest data released by the Central Bank of Nigeria showed that private sector credit increased from N93.743 trillion recorded in January 2026, representing sustained month-on-month expansion in bank lending as financial institutions deepen support for the real sector of the economy.
On a year-on-year basis, the figures reflected even stronger growth. Credit to the private sector stood at N76.257 trillion in February 2025, indicating an increase of over N18 trillion within 12 months.
The development comes amid the ongoing banking recapitalisation programme introduced by the apex bank, which industry stakeholders believe is pushing banks to expand their balance sheets, strengthen liquidity positions, and pursue aggressive growth strategies across critical sectors of the economy.
Analysts noted that the sharp rise in lending demonstrates renewed confidence in Nigeria’s productive sectors, including manufacturing, agriculture, energy, telecommunications, trade, and infrastructure, despite persistent macroeconomic challenges such as inflationary pressures, foreign exchange volatility, and elevated interest rates.
A breakdown of lending trends throughout 2025 showed that private sector credit maintained a generally upward trajectory, although temporary fluctuations emerged during periods of economic uncertainty.
Bank credit rose to N78.067 trillion in April 2025 before easing slightly to N77.967 trillion in May and N76.125 trillion in June. The downward movement continued into the third quarter, with lending dropping to N76.723 trillion in July and N75.882 trillion in August before declining further to N72.527 trillion in September.
However, the banking industry regained momentum in the last quarter of the year as economic activities improved and financial institutions intensified lending activities. Credit rebounded to N74.411 trillion in October and climbed further to N74.631 trillion in November before closing December 2025 at N75.834 trillion.
Speaking on the development, Dr Akin Olaniyan, a respected journalist with over three decades of experience, leadership coach, and lecturer at Lagos Business School, described the surge in private sector lending as a reflection of growing confidence in Nigeria’s economic prospects and the resilience of the banking industry.
According to him, the recapitalisation exercise initiated by the CBN is gradually reshaping the financial system and positioning banks to play a more strategic role in economic development.
He explained that stronger capital bases would enable banks to finance large-scale projects, support industrial growth, and compete more effectively within the African and global financial ecosystem.
“Banks are beginning to reposition themselves for a more competitive future. What we are seeing is not just an increase in credit figures but a broader strategic alignment between financial institutions and national economic growth objectives,” Olaniyan stated.
He added that the sustainability of the lending expansion would depend heavily on policy consistency, regulatory stability, and improved productivity across key sectors of the economy.
Also commenting on the trend, Celestine Ukpong said the increase in private sector credit signals stronger financial intermediation and reflects banks’ willingness to support economic activities despite existing risks within the operating environment.
Ukpong noted that access to credit remains a critical driver of economic growth, especially for small and medium-scale enterprises struggling with high production costs and reduced consumer purchasing power.
According to the economist, the banking sector’s renewed appetite for lending could stimulate investment, create jobs, and support broader economic expansion if credit is channelled into productive sectors.
He, however, warned that the rising volume of loans must be matched with prudent risk management to prevent a deterioration in asset quality within the banking industry.
“The challenge is not only about increasing lending but ensuring that the loans are productive and sustainable. If properly managed, this level of credit expansion can significantly stimulate industrial output and economic activities,” Ukpong explained.
Financial experts further argued that the CBN’s reforms, coupled with the recapitalisation programme, are encouraging banks to pursue long-term growth while strengthening resilience against economic shocks.
The sustained rise in private sector credit is expected to support Nigeria’s broader economic ambitions by improving access to financing, expanding industrial capacity, boosting entrepreneurship, and accelerating job creation across multiple sectors.
As banks continue to raise fresh capital and reposition for larger regional and global opportunities, analysts believe Nigeria’s financial sector may witness even stronger lending growth in the coming months, provided macroeconomic stability improves and investor confidence remains positive.
Nigeria’s banking sector credit to the private sector rose to a record N94.6tn in February 2026 amid CBN recapitalisation reforms, with experts highlighting implications for economic growth, investment, and job creation.
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