The African Development Bank has said banks in Nigeria lend the equivalent of just 9.4 per cent of the country’s Gross Domestic Product to the private sector, reflecting the limited role of the financial system in supporting business growth and economic development.
The bank disclosed this in its African Economic Outlook 2026 report, which noted that Nigeria ranked among the weakest performers among major African economies in private sector credit provision.
According to the report, “Major African economies such as Kenya (31.6 per cent), Egypt (28.3 per cent), Côte d’Ivoire (21.4 per cent), and Nigeria (9.4 per cent) remain well below comparable emerging lower-middle-income market economies such as Vietnam (121.6 per cent), Malaysia (121.5 per cent), and Chile (111.8 per cent).”
The AfDB stated that Africa’s domestic credit to the private sector averaged 34.6 per cent of GDP between 2020 and 2024, the lowest level among global regions and a decline from the previous decade.
It noted that most bank lending across the continent remained concentrated in short-term and low-risk assets rather than long-term investments capable of generating stronger development outcomes.
