Banks’ Lending to Oil, Gas Rise 17.5% to N5.58trn in Q1

Deposit money banks’ credit to the oil and gas sector rose by 17.5 per cent in the first quarter of 2026, increasing from N4.75 trillion in January to N5.58 trillion in March, according to the latest banking sector data.

The N830 billion increase in credit to the oil and gas sector over the three month period reflected sustained growth in bank financing to the sector, with lending rising steadily throughout the quarter.

Data showed that deposit money bank credit to the sector stood at N4.746 trillion in January 2026 before increasing to N5.049 trillion in February. By March, credit to the oil and gas sector had risen further to N5.577 trillion, representing a 10.5 per cent increase from the February level.

Meanwhile, deposit money bank credit to the finance, insurance and capital market sector also recorded strong growth during the period, rising by 8.5 per cent from N9.033 trillion in January to N9.801 trillion in March.

Credit to the finance, insurance and capital market sector increased by N768 billion over the three months. The data showed that lending to the sector rose from N9.033 trillion in January to N9.160 trillion in February, before climbing further to N9.801 trillion in March. The March figure represents a seven per cent increase from the N9.160 trillion recorded in February.

While lending to oil and gas expanded by 17.5 per cent between January and March, credit to finance, insurance and capital market rose by 8.5 per cent within the same period. By the end of March 2026, banks’ credit exposure to the finance, insurance and capital market sector stood at N9.801 trillion, significantly higher than the N5.577 trillion recorded for the oil and gas sector.