The Federal Government’s domestic borrowing has risen sharply by N17.4 trillion within one year, according to new data released by the Central Bank of Nigeria (CBN).
The latest monetary and credit statistics show that total credit to the Federal Government increased from N22.99 trillion in May 2025 to N40.38 trillion in May 2026, representing a 75.6 per cent year-on-year increase.
The figures also indicate that government borrowing grew by N779.7 billion between April and May 2026 alone.
“Credit to the Federal Government rose from N22.99tn to N40.38tn within one year.”
The data suggests banks continue to channel a significant share of their funds into government securities such as treasury bills and bonds, rather than extending more loans to business.
Meanwhile, lending to the private sector recorded only a modest increase, rising from N80.59 trillion in April to N81.04 trillion in May 2026.
Economic experts say the growing preference for government debt could reduce credit available to businesses, making it harder for companies to expand and invest.
Analysts also warned that sustained government borrowing may continue to crowd out private sector investment if the trend persists.
The CBN is yet to provide a detailed breakdown of private sector lending across different industries.
Source: Central Bank of Nigeria (CBN)
