Bank Credit to Private Sector Rises to N81trn As Cash Outside Banks Hits Record High
- Nigerian bank lending to the private sector grew marginally to N81.041 trillion in May 2026
- Data shows that lending to the government increased by 1.97%, pushing total domestic credit to N121.4 trillion
- Cash held outside banks reached a record N5.193 trillion as Nigerians prefer physical cash
Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
Nigeria’s bank loans to the private sector recorded a slight increase in May 2026, rising by 0.56% to N81.041 trillion from N80.585 trillion in April.
The growth marked a recovery after the decline recorded in the previous month, indicating a modest improvement in borrowing by businesses and households, although credit levels remained below earlier peaks.
Source: Getty Images
Recent data from the Central Bank of Nigeria (CBN) showed that private sector credit increased to N81.041 trillion in May from N80.585 trillion in April.
Despite the rebound, the figure remained 14.34% below the record N94.610 trillion recorded in February 2026 and lower than the N93.743 trillion reported in January.
However, the latest figure was higher than the N75.834 trillion recorded in December 2025, Leadership reports.
Government credit rises
CBN data also showed that credit to the government continued to increase during the month.
Government borrowing from banks rose to N40.378 trillion in May from N39.599 trillion in April, representing a 1.97% increase.
Government credit stood at N39.359 trillion in February, N37.867 trillion in January, and N34.221 trillion in December 2025.
Consequently, domestic credit, which represents total credit extended within the economy, increased by 1.03% to N121.420 trillion in May from N120.184 trillion in April.
The figure, however, remained below the N133.969 trillion recorded in February and N131.611 trillion in January.
Source: Getty Images
Cash outside banks hits record high
Meanwhile, cash held outside the banking system climbed to a record N5.193 trillion in May, rising by 2.16% from N5.083 trillion recorded in April.
The amount slightly surpassed the previous record of N5.188 trillion recorded in February.
The increase suggests that many Nigerians continue to hold more cash outside the banking system despite regulatory efforts to expand financial inclusion and encourage electronic payment adoption.
Further CBN data showed that currency in circulation increased by 0.76% to N5.689 trillion in May from N5.646 trillion in April.
Currency in circulation stood at N5.709 trillion in February, N5.731 trillion in January, and N5.732 trillion in December 2025.
CBN’s foreign reserves
Earlier, Legit.ng reported that Nigeria's external reserves have increased to $51.06 billion, exceeding the Central Bank of Nigeria's (CBN) year-end target of $51.04 billion.
It has gained 32.62% compared to $38.50 billion in the same period in 2025.
The current reserve level provides the CBN with the buffer to support the naira and settle international obligations.
Source: Legit.ng
