Fresh data released by the Central Bank of Nigeria reveals that credit to the Federal Government rose sharply over the 12 months ending in May 2026.
The surge highlights an aggressive public sector appetite for borrowing despite the prevailing tight monetary conditions in the country.
According to the CBN’s latest monetary and credit statistics on Wednesday, total credit to the government climbed to N40.38tn in May 2026, up from N22.99tn recorded in the corresponding period of 2025. This marks a year-on-year increase of N17.39tn (approximately N17.4tn), representing a massive 75.6 per cent rise in lending exposure to the public sector.
On a month-on-month basis, the government’s borrowing momentum showed no signs of slowing down, expanding by N779.70bn in just 30 days from the N39.60tn reported in April 2026.
Banking sector data indicate that commercial and merchant lenders are continuing to allocate significant liquidity towards government securities. Rather than channelling funds
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