Figures cited by Premium Times show that commercial and merchant banks in Nigeria have significantly scaled up total credit extended to the agricultural sector, reaching N3.86 trillion by the end of the first quarter of 2026. This substantial capital shift highlights a deliberate realignments of banking sector loan portfolios toward sustainable real-sector investments.
The growth in agricultural lending represents a marked departure from historic trends where the oil and gas industry dominated private sector credit allocations. As financial institutions navigate evolving global energy dynamics and local macroeconomic reforms, deposit money banks are increasingly channeling domestic liquidity into food production, value chain processing, and agricultural infrastructure.
Analysts observe that the credit expansion is backed by policy incentives aimed at boosting domestic food production and mitigating import dependencies. The influx of capital is expected to provide critical liquidity to commercial farms, agri-tech ventures, and smallholder farmer networks across the country.
Nairametrics confirmed the shift, stating that “banks shift N3.86 trillion into agriculture as oil and gas credit shrinks,” reflecting broader balance sheet restructuring across deposit money banks. Additionally, Leadership reported that “financial institutions are prioritizing real-sector intervention to cushion inflationary pressures and capitalize on domestic supply chain opportunities.”
Echotitbits take:
The massive flow of bank credit into agriculture is a positive sign for structural economic diversification and food security. However, for these loans to deliver high yields and prevent non-performing loans (NPLs), the government must complement financial credit with improved rural infrastructure, storage facilities, and security across farming belts.
Source: Naira Metrics – https://nairametrics.com/2026/08/15/banks-shift-n3-86-trillion-into-agriculture-as-oil-and-gas-credit-shrinks/, and August 15, 2026
Photo credit: Africa Business
