Credit to Nigeria’s Private Sector increased to N80.86 trillion in February 2024
In the latest Money and Credit statistics, the Central Bank of Nigeria (CBN) reported that bank credit to the private sector rose by 5.99 percent from N76.29 trillion in January 2024 to N80.86 trillion in February 2024. Year-on-Year, this marks a N39.11 trillion (93.67 percent) increase from N41.75 trillion in February 2023.
Conversely, credit to the government decreased by 6.2 percent from N36.17 trillion in January 2024 to N33.92 trillion in February 2024. The combined credit to the private sector and government led to a net domestic credit of N114.78 trillion, showing a 2.06 percent MoM increase compared to N112.46 trillion in January 2024. The rise in private sector credit suggests potential growth in business activities, investment, and job creation.
On the other hand, the decrease in government credit will help mitigate the crowding-out effect of government borrowing in the domestic financial market. This shift resulted in a 2.6 percentage points increase in the share of credit to the private sector, reaching 70.4% from 67.8% in January 2024. While this is a positive development, for the increase to have the desired impact on the economy, the government must enhance the business environment and ensure a consistent and reliable electricity supply.
