Central Bank of Nigeria reports divergent credit and liquidity trends

The Central Bank of Nigeria (CBN) has reported divergent trends in the nation's credit landscape. In the first quarter of 2026, total credit extended by banks to the economy rose by 5.95 per cent to ₦60.73 trillion. However, outstanding consumer credit saw a sharp contraction of 18.78 per cent, falling by approximately ₦710 billion to ₦3.07 trillion.

This decline in consumer lending was primarily driven by a 41.45 per cent drop in retail loans. In contrast, the services sector remained the largest recipient of bank credit, accounting for nearly 60 per cent of the total. Credit to the agriculture sector also saw a 6.93 per cent increase.

Separately, recent financial market data shows a significant shift in banking system liquidity. The CBN repaid a combined ₦3.81 trillion into the banking system through Open Market Operations (OMO) and primary-market repayments on September 15 and 16, 2026. These actions contributed to a substantial increase in liquidity parked with the apex bank through the Standing Deposit Facility (SDF).