Government Credit Rises 65.6% to N39.6 Trillion

•As currency outside banks drops 12% to N5.08tr

By Babajide Komolafe & Elizabeth Adegbesan

Credit to the government increased by 65.6 percent year‑on‑year to N39.6 trillion in April 2026, up from N23.9 trillion in April 2025, as borrowing rose to cover the 2026 budget deficit.

The Central Bank of Nigeria (CBN) released this information in its latest Money and Credit Statistics.

Under the Appropriation Act 2026, the Federal Government plans to borrow N29.2 trillion to bridge the gap between revenue of N68.32 trillion and expenditure of N36.87 trillion.

Vanguard analysis shows that the Federal Government increased borrowing from domestic investors by 7.4 percent to N8.1 trillion in the first quarter of 2026, compared with N7.5 trillion in the same period of 2025.

The CBN data also indicates that credit to the private sector rose by 3.25 percent to N80.6 trillion in April 2026, from N78.06 trillion in April 2025.

As a result, net domestic credit grew by 17.8 percent to N120.2 trillion in April 2026, up from N102 trillion in the corresponding period last year.

Following the same trend, Nigeria’s broad money supply (M2) increased by 4.8 percent year‑on‑year to N124.98 trillion in April 2026, from N119.2 trillion in April 2025, reflecting improved liquidity in the financial system.

A further breakdown of the money supply components shows that currency outside banks declined by 12.2 percent to N5.08 trillion in April 2026, from N5.7 trillion in the corresponding period of 2025, indicating greater use of banking channels and electronic payment systems.

Demand deposits (current accounts) increased by 6.3 percent to N38.7 trillion from N36.4 trillion during the review period.

Quasi‑money also rose by 3.8 percent to N81.2 trillion in April 2026, from N78.2 trillion in April 2025. Quasi‑money includes money in savings accounts, time deposits, treasury bills and other money‑market instruments.

Narrow money, which comprises currency in circulation and current accounts, grew by 7.09 percent to N43.8 trillion from N40.9 trillion.

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