Banking industry credit to the private sector rebounded marginally in May 2026, rising by 0.56 per cent to N81.041 trillion from N80.585 trillion recorded in April, according to the latest monetary statistics released by the Central Bank of Nigeria (CBN).
The increase came after a decline in April and signals a modest recovery in lending to businesses and households, although credit levels remain below the record highs recorded earlier in the year. this is as the amount of cash outside the banks rose to its highest level in the course of the month.
CBN data showed that credit to the private sector stood at N81.041 trillion in May, up from N80.585 trillion in April. However, private sector credit remains 14.34 per cent below the February peak of N94.610 trillion. It also remained significantly lower than N93.743 trillion recorded in January, but higher than N75.834 trillion credit to the private sector recorded in December 2025.
The data also indicated that credit to the government continued its upward trajectory, rising to N40.378 trillion in May from N39.599 trillion in April, an increase of 1.97 per cent. Credit to the government had stood at N39.359 trillion in February, N37.867 trillion in January and N34.221 trillion in December.
As a result, net domestic credit, which represents total credit to the economy, increased by 1.03 per cent to N121.420 trillion in May from N120.184 trillion in April. The figure is however lower than N133.969 trillion recorded in February and N131.611 trillion recorded in January but higher than N110.055 trillion recorded at the end of December.
Meanwhile, the amount of cash held outside the banking system climbed to N5.193 trillion in May, its highest level so far rising by 2.16 per cent. The figure rose from N5.083 trillion in April and was marginally above the N5.188 trillion recorded in February.
The increase in cash outside banks suggests a growing preference for cash holdings despite ongoing efforts to deepen financial inclusion and encourage electronic payment channels.
Data from the apex bank further showed that currency in circulation rose to N5.689 trillion in May from N5.646 trillion in April. Currency in circulation had stood at N5.709 trillion in February, N5.731 trillion in January and N5.732 trillion in December.
