Banks’ Credit to Households, Businesses, Government Rises by 17% to N84trn in One Month, Keep CBN Promises

• The Central Bank of Nigeria has said that the banking sector increased the amount of loans to the economy
• The loans, which totaled N84 trillion, were given to Nigerian households, businesses, and government parastatals
• Former CBN governor, Godwin Emefiele, had promised increased access to loans for households at an event in 2022.

The Central Bank of Nigeria has disclosed that net domestic credit to the economy has hit N84 trillion as at June 2023.

This represents a 11 percent Month-on-Month, MoM, increase when compared to N75.49 trillion credit facilities in May 2023.

CBN stated in its latest Money and Credit Statistics released on its websites and obtained by Legit.ng.

How the banks loans were shared in the economy

Breakdown of the data shows that the private sector took N52.8 trillion, showing about 17.9 percent rise from the N44.78 trillion it collected in May 2023.

The statistics also show credit to the government rose by 1.6 percent to N31.2 trillion from N30.7 trillion during the period.

In the the same report, CBN revealed that currency in circulation has surpassed N64 trillion in one month

The amount spiked from N55.5 trillion in May, addition of N8.8 trillion as the country battles inflation

CBN loan promises

The CBN in an even in 2022 promised improve access to finance and credit for households, small and medium-sized enterprises (SMEs).

The Cable reports that the ousted CBN governor Godwin Emefiele said:

“The policy focus of the bank is with a pledge to sustain improved access to finance and credit for households and businesses, mobilise investment to boost domestic productivity, enable faster growth of non-oil exports, and support employment generating activities”

Expert calls on CBN to probe forex demand

In another report, The Central Bank of Nigeria has been asked to investigate the forex demand fueling the depreciation of naira.

Since the decision of the CBN to adopt a free market regime, the Naira has dropped significantly against US dollar.

In an exclusive interview with Legit, CEO of CPPE, Muda Yusuf expressed his belief that the Central Bank of Nigeria must begin investigation into the forex market demands.

Source: Legit.ng