Construction emerges as one of Nigeria’s biggest credit destinations in Q1

Nigeria’s construction sector attracted a sharp increase in bank credit in the first quarter of 2026, with lending to the sector rising by 16.2 per cent to N369.2 billion, according to Central Bank of Nigeria (CBN) data.

The increase pushed banks’ outstanding credit to construction companies to N2.65 trillion by March 2026, up from N2.12 trillion in January. The expansion was significantly faster than the growth in total private-sector credit during the period.

CBN data contained in its Depository Corporations Survey shows that total private-sector credit increased from N57.31 trillion in December 2025 to N59.74 trillion in March 2026, representing growth of about 4.2 percent.

Construction therefore expanded at almost four times the pace of overall private-sector credit in the first quarter.

The acceleration is particularly notable because construction was among the strongest recipients of incremental bank credit during the quarter.

Only three sectors recorded larger absolute increases in credit between January and March: trade/general commerce, oil and gas-related services, and finance, insurance and capital market activities.

Trade/general commerce recorded the biggest increase at about N1.69 trillion, followed by oil and gas-related services with N727.0 billion and finance, insurance and capital market activities with N561.7 billion.

Construction followed with its N369.2 billion increase. Agriculture came next, gaining N255.3 billion, while power and energy added N121.6 billion.

The numbers suggest that construction is becoming an increasingly important channel through which banks are deploying credit into the real economy, particularly as demand for housing, commercial…