Data released by the Central Bank of Nigeria shows that private sector credit expanded by 2.8 percent in June 2026, reaching N83.3 trillion compared to N81 trillion in May. Conversely, government credit saw a slight decline of 0.99 percent, falling to N40 trillion from the N40.4 trillion reported in the prior month. This drop occurred despite the administration’s ongoing efforts to fund a N23.85 trillion budget shortfall.
The CBN’s latest statistics highlight a 1.5 percent growth in net domestic credit, which moved from N121.42 trillion to N123.3 trillion. This shift contributed to a 3.09 percent rise in the broad money supply, totaling N133.2 trillion in June. Growth was primarily supported by an eight percent increase in Quasi money, while narrow money grew only slightly by 0.22 percent to N44.7 trillion.
Demand deposits also saw a modest rise of 1.02 percent to reach N39.8 trillion. Notably, currency circulating outside of banks decreased by 5.7 percent, dropping to N4.9 trillion. This shift suggests a trend toward greater formalization of the financial system as liquidity returns to banking channels.
