Nigeria Central Bank reports 75% surge in government borrowing

The Central Bank of Nigeria disclosed that credit extended to the federal government rose sharply to N40.38 trillion (about $11.6 billion) in May 2026, up 75.6 % from N22.99 trillion a year earlier. On a month‑to‑month basis the amount increased by N779.7 billion from April 2026.

Private‑sector lending grew only marginally, reaching N81.04 trillion in May 2026, roughly twice the size of government borrowing. Banks continued to allocate large volumes to Treasury Bills and federal bonds, prompting analysts to warn that the growing appetite for sovereign debt could crowd out affordable credit for businesses and dampen private‑sector investment. The central bank kept its policy rate at 26.5 % as part of a restrictive monetary stance aimed at containing inflation.