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Nigerian banks increased lending to the agriculture sector to N3.86 trillion in March 2026, even as credit extended to oil and gas companies fell by about N335 billion during the first quarter of the year.
The latest figures, contained in the Central Bank of Nigeria’s (CBN) Quarterly Statistical Bulletin, point to a shifting pattern in the distribution of bank credit across key sectors of the economy.
Agricultural lending rose steadily throughout the first quarter, climbing from N3.71 trillion in January to N3.81 trillion in February, before reaching N3.86 trillion in March.
The three-month increase of roughly N150 billion represents about 4% growth, making March the highest level of agricultural credit recorded during the period.
Oil and Gas Credit Falls
While agriculture attracted additional financing, lending to the oil and gas sector moved in the opposite direction.
Credit to the sector declined from N10.91 trillion in January to N10.71 trillion in February, before dropping further to N10.58 trillion in March.
The N335 billion reduction represents a decline of about 3.1% over the three-month period.
Despite the contraction, oil and gas remained one of the largest recipients of sector-specific bank credit during the quarter.
Manufacturing Also Records Decline
The manufacturing sector similarly experienced a reduction in bank financing.
Credit to manufacturers fell from N6.57 trillion in January to N5.77 trillion in March, representing a decline of approximately N800 billion.
The reduction contrasts with developments in other sectors, including power and energy, where bank lending increased from N1.30 trillion to N1.61 trillion over the same period.
Real estate also recorded stronger credit growth, with lending rising from N4.67 trillion in January to N6.29 trillion in March.
Private Sector Credit Expands
Despite the uneven movement across individual industries, overall private-sector credit expanded during the first quarter.
The CBN data showed total private-sector credit rising from N57.41 trillion in January to N59.74 trillion in March.
Separate CBN data also showed private-sector credit increasing marginally to N75.62 trillion in February 2026, from N75.24 trillion in January. The figures represent different credit measures and are therefore not directly interchangeable with the sectoral lending data.
Net domestic credit also increased to N111.40 trillion in February, compared with N109.43 trillion in January, while credit to government rose from N34.19 trillion to N35.77 trillion.
High Interest Rates Continue to Challenge Borrowers
The changing lending pattern comes against a backdrop of relatively tight monetary conditions.
The CBN’s Monetary Policy Committee cut the Monetary Policy Rate (MPR) by 50 basis points to 27% in September 2025, before retaining the rate at its November meeting.
The policy stance was intended to support economic activity while keeping inflationary pressures under control. However, elevated borrowing costs, inflation and exchange-rate volatility have continued to influence both banks’ lending decisions and businesses’ appetite for credit.
The first-quarter data therefore suggests that while overall financing to the private sector continues to expand, the flow of bank credit is becoming increasingly differentiated across industries.
Agriculture’s rise to N3.86 trillion indicates stronger financing activity in the sector, while the declines recorded in oil and gas and manufacturing point to a reallocation of credit as banks respond to prevailing economic and sector-specific conditions.
