African Development Bank highlights Nigeria's low private sector credit, impacting economic growth

This places Nigeria among the weakest performers in private sector credit provision compared to other major African economies like Kenya 31.6 percent, Egypt 28.3 percent, and Côte d’Ivoire 21.4 percent, and significantly below emerging lower-middle-income market economies such as Vietnam 121.6 percent. The AfDB’s African Economic Outlook 2026 report noted that Africa’s domestic credit to the private sector averaged 34.6 percent of GDP between 2020 and 2024, a decline from the previous decade and the lowest globally. The report attributes this weak credit environment to poor financial intermediation, low domestic savings mobilization, and regulatory weaknesses.

Africa’s gross domestic savings averaged 16.6 percent of GDP between 2021 and 2024, well below the global average of 27.3 percent. The AfDB also pointed out that commercial banks across Africa hold significant government securities, reducing resources for business lending. For Nigeria, the AfDB described the financial system as shallow, with stock market capitalization averaging 11.8 percent of GDP between 2020 and 2024.

The bank recommended deeper financial market reforms and greater use of financing instruments like green bonds and public-private partnerships to expand access to long-term