Banks lend Nigerian government ₦15.66 trillion between 2025 and 2026, bringing the total credit to ₦23.93 trillion, a 65% increase in one year

• Nigerian banks increased lending to the government by ₦15.66 trillion between April 2025 and April 2026.

• Credit to government rose from ₦23.93 trillion to ₦39.60 trillion, representing a 65.4% increase.

• Private-sector credit grew by only ₦2.52 trillion during the same period.

• Government borrowing accounted for most of the increase in domestic credit recorded over the year.

Nigerian banks increased their lending to the government by a staggering ₦15.66 trillion within one year, underscoring the growing reliance of public authorities on domestic borrowing despite slower growth in credit to businesses and the private sector.

New data from the Central Bank of Nigeria (CBN) showed that credit extended by banks to the government rose from ₦23.93 trillion in April 2025 to ₦39.60 trillion in April 2026, representing a 65.4 per cent increase.

The sharp rise means government borrowing accounted for a significant portion of the increase in domestic credit during the period, as lenders continued to channel more funds toward public sector financing.

In contrast, credit to the private sector recorded only modest growth. Outstanding loans to businesses and households increased from ₦78.07 trillion in April 2025 to ₦80.59 trillion in April 2026, a rise of ₦2.52 trillion over the same period.

The figures suggest that banks were far more willing to increase their exposure to government-related lending than to private-sector borrowers.

Analysts often pay close attention to this trend because strong private-sector lending is generally seen as a driver of economic expansion, job creation and investment. When government borrowing rises rapidly, concerns sometimes emerge that businesses may find it more difficult or expensive to access credit needed for growth.

The increase in lending comes as the Federal Government continues to rely on domestic borrowing to fund budgetary needs and finance key expenditures.

According to the CBN data, total domestic credit in the economy rose from ₦102 trillion in April 2025 to ₦120.18 trillion in April 2026. Of that increase, lending to government accounted for the overwhelming majority.

The data also showed that government's share of total domestic credit increased significantly during the period, reflecting its growing presence in the country's credit market.

The development comes amid ongoing efforts by policymakers to stimulate economic growth, improve revenue generation and reduce fiscal pressures. While government borrowing remains an important tool for funding infrastructure and public services, economists have repeatedly stressed the importance of ensuring that businesses also have adequate access to finance.

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The banking sector has continued to benefit from higher interest rates and increased demand for government securities, which are often considered lower-risk investments compared to many private-sector loans.

As Nigeria seeks to accelerate economic growth and create jobs, the balance between financing government spending and supporting private-sector expansion is expected to remain a key issue for policymakers, regulators and financial institutions.