The Central Bank of Nigeria has disclosed that new lending to small and medium-sized enterprises rose significantly in April 2026, with fresh SME credit climbing from N153 billion in March to approximately N199 billion in the same period.
CBN Governor Olayemi Cardoso made the disclosure during a post-meeting press briefing following the 305th session of the Monetary Policy Committee in Abuja. The figures signal a meaningful shift in commercial bank behaviour towards smaller businesses, even as broader credit conditions remain tight.
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Retail lending drives the growth
Cardoso noted that retail lending accounted for approximately 94.73 per cent of new credit facilities issued during the period, while general commerce represented about 2.46 per cent. He said banks are increasingly becoming more willing to diversify their lending exposure away from large-ticket transactions towards SMEs and retail businesses, though he acknowledged that the trend may not be sustained without continued policy support. The development marks a notable departure from previous periods in which commercial banks channelled the bulk of their lending into government securities and large corporate borrowers, where returns were considered more predictable.
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Policy tools backing the push
To support SME financing, Cardoso pointed to a memorandum of understanding signed between the CBN and the Nigerian Communications Commission, describing the agreement as designed to reduce fraud-related bottlenecks and improve how smaller businesses connect to financial systems. He also highlighted the Global Standing Instruction as an additional tool the apex bank has deployed to encourage banks to extend more credit to the SME sector. Cardoso was clear that driving SME credit is not the responsibility of the CBN alone, and that collaboration with the Bank of Industry, the Federal Ministry of Industry, Trade and Investment, and fiscal authorities remains essential to sustaining progress.
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What it means for Nigerian businesses
The MPC also retained the benchmark Monetary Policy Rate alongside other policy parameters at its May 2026 session, signalling a continuation of the current monetary stance as the CBN balances inflation concerns with growth considerations. For Nigerian SMEs, the uptick in new credit facilities is a welcome development, particularly at a time when high lending rates and collateral requirements have historically placed formal bank credit out of reach for most small business owners. The N199 billion figure, while still a fraction of total credit in the banking system, represents a directional shift that analysts say needs to be consolidated over several quarters before it can meaningfully change the financing landscape for smaller enterprises. Whether the momentum holds will depend on how aggressively the CBN continues to deploy its policy levers and how willingly commercial banks respond.
