The Central Bank of Nigeria, CBN has disclosed that private sector loans from Nigerian banks increased by N5.58 trillion in 2021 ending as it recorded N35.73 trillion.
Investors King gathered that in December 2020, the private sector bank credit was N30.15 trillion. According to CBN data, there was a consistent rise in the private sector monthly loan throughout the year 2021 except in February.
“The Nigerian banking sector’s loan to the private sector increased by N5.1 trillion (16.67%) between January and December 2021.
“A thorough examination of the monthly credit value reveals a steady rise throughout the year, with the exception of February, when credit to the sector fell by N100 billion. The figure dipped to N30.5 trillion in February, down from N30.6 trillion in January,” it stated.
Investors King learnt that the government also had access to increased funds from Nigerian banks even as the private sectors received theirs.
Report has shown that the government’s credit rose from N12.4 trillion as recorded in 2020 to N13.73 trillion in December 2021 which is an increase of N1.33 trillion.
The CBN’s policies to enhance the nation’s economy have aided the private sectors and government agencies’ accessibility to loans.
With the aim of ensuring economic stability following the recession in the nation and effects of the Covid-19 Pandemic in the previous year, the Central Bank intensified easy access to credit facilities.
Further highlights from the CBN data revealed that in 2021, currency in circulation grew by N1.15 trillion in 2021 to N3.33 trillion as of December 2021.
“The apex bank maintained the country’s benchmark interest rate (MPR) at 11.5% all through 2021 and has started the new year with the same approach, retaining the cash reserve ratio at 27.5% and liquidity ratio at 30%.
“Bank loans to the private sector, on the other hand, increased to N31.4 trillion in March, then to N31.9 trillion in April, N32.1 trillion in May, and N32.6 trillion in June.
Credit to the sector increased to N32.8 trillion in July, continuing the upward trend. In August, it reached N33.4 trillion, followed by N34.39 trillion in September, N35.3 trillion in October, and N35.7 trillion in November,” the report said.
