According to the most recent credit data released by the Central Bank of Nigeria (CBN), the total amount of credit extended by the banking sector to the Nigerian economy at the end of the previous year increased by 44.8% year over year to N96.2 trillion.
The CBN’s Money and Credit Statistics show that at the end of December of last year, lending to the public and private sectors increased from N66.398 trillion in December 2022 to N92.188 trillion.
The information shows loans made by the CBN, state-owned development banks like the Bank of Industry (BoI), and lesser credit extensions from other institutions such non-interest and microfinance banks.
From N24.656 trillion at the end of December 2022 to N33.669 trillion at the end of December 2023, the government’s credit grew by 36.6% over the study period. In the meantime, from N41.741 trillion at the end of 2022 to N62.519 trillion at the end of the previous year, lending to the private sector climbed by 49.8%.
Many anticipate that the monetary policy makers will continue to adopt an aggressive stance ahead of the CBN’s Monetary Policy Committee (MPC) meeting on February 26.
The governor of the CBN, Dr. Olayemi Cardoso, shares this viewpoint and has indicated that the central bank will continue to tighten its stance in an effort to lower national inflation.