CEM REPORT, FINANCE | The private sector in Nigeria has enjoyed increased credit in the month of February.
Credit extended to the private sector in the month stood at N41.75 trillion an increase by N212 billion, representing 0.51 per cent increase Month-on-Month (MoM) when compared with N41.54 trillion reported in January 2023.
According to the Central Bank of Nigeria (CBN) in its “money and credit” statistics posted on its website, credit to the private sector in 2023 gained 16.03 per cent in its Year-on-Year (YoY) growth from a reported N35.99 trillion in February 2022 to N41.75 trillion in February 2023.
The CBN in its report disclosed that the manufacturing, general commerce, and oil & gas are key sectors benefiting from private sector lending.
The increased credit can be attributed to the CBN directive on Loan-to-Deposit Ratio (LDR) which encouraged banks to increase lending to the real sector of the economy, and business strategy and competition.
According to the Deputy Governor, Economic Policy, CBN, Kingsley Obiora, during the first MPC meeting of 2023, the increase in credit to the key sectors of the economy is expected to bolster aggregate demand and promote economic growth, job creation, and poverty alleviation.