Private Sector Credits From Banks Increases By N1.29trn In Q1 2021
Banks credit to Nigeria’s private sector increased by N1.29 trillion in the first quarter of 2021 to stand at N31.44 trillion, according to data obtained from the Central Bank of Nigeria (CBN).
This is in line with the CBN’s continued effort to compel Banks to boost their credit to the real sector of the economy so as to stimulate Nigeria’s economic growth.
According to the analysis of the data from the apex bank, credit to the private sector increased from N30.15 trillion recorded as of December 2020 to N31.44 trillion as of the end of March 2021. Meanwhile, credit offered to the government declined by N410.7 billion in the review period.
Total credit to the economy rose by N880.65 billion in the period under review, from N42.55 trillion as of December 2020 to N43.44 trillion at the end of Q1 2021.
Meanwhile, credit allocation to the government declined by N410.62 billion from N12.4 trillion to N11.99 trillion.
It is worth noting that the total currency in circulation declined by N99.73 billion to stand at N2.81 trillion as of March 2021.
According to the CBN’s MPC communique, gross banking sector credit at the end-March 2021 stood at N23.53 trillion compared with N22.68 trillion at end-December 2020.
READ: Banks to recover N6.125 trillion loan from oil firms
A further breakdown shows that commercial & merchant banks disbursed N660 billion in the period, microfinance banks (N130 billion), development finance institutions (N50 billion), and primary mortgage banks and finance companies disbursed a total of N10 billion.
This is in line with the CBN’s continued effort to compel Banks to boost their credit to the real sector of the economy so as to stimulate Nigeria’s economic growth.
According to the analysis of the data from the apex bank, credit to the private sector increased from N30.15 trillion recorded as of December 2020 to N31.44 trillion as of the end of March 2021. Meanwhile, credit offered to the government declined by N410.7 billion in the review period.
Total credit to the economy rose by N880.65 billion in the period under review, from N42.55 trillion as of December 2020 to N43.44 trillion at the end of Q1 2021.
Meanwhile, credit allocation to the government declined by N410.62 billion from N12.4 trillion to N11.99 trillion.
It is worth noting that the total currency in circulation declined by N99.73 billion to stand at N2.81 trillion as of March 2021.
According to the CBN’s MPC communique, gross banking sector credit at the end-March 2021 stood at N23.53 trillion compared with N22.68 trillion at end-December 2020.
READ: Banks to recover N6.125 trillion loan from oil firms
A further breakdown shows that commercial & merchant banks disbursed N660 billion in the period, microfinance banks (N130 billion), development finance institutions (N50 billion), and primary mortgage banks and finance companies disbursed a total of N10 billion.
