Credit to Private Sector Hits Record High of N80tn, 94% YoY Growth
The Central Bank of Nigeria (CBN) has disclosed that banks’ credit to the private sector rose by 93.77 per cent Year-on-Year (YoY) to N80.86 trillion in February 2024 from N41.75trillion reported in the corresponding period of 2023.
The CBN who disclosed this in its money and credit statistics noted that credit to the government increased YoY by 19. 30 per cent from N28.43 trillion in February 2023 to N33.92 trillion recorded in February 2024
Analysis of the numbers showed that in January 2024, the Nigerian financial landscape witnessed a significant starting point, with credit activities at N76.29 trillion. This marked a notable increase from the previous year, setting a robust foundation for lending operations and indicating a positive trajectory for economic growth.
Transitioning into February 2024, there was a marginal uptick in credit, reaching N80.86 trillion. This modest increase of approximately 0.51 per cent hinted a steady pace in financial transactions, underscoring continued stability in the financial sector and laying the groundwork for further economic expansion.
Reflecting on the preceding year, a breakdown for 2023 revealed a series of fluctuations in credit activities. Starting from January 2023, the credit landscape began at N41.54 trillion, providing a foundation for financial activities.
This figure set the stage for subsequent months, indicating the baseline for lending operations. February 2023 saw a marginal uptick, with credit increasing to N41.75 trillion, marking a modest rise of approximately 0.51 per cent and setting the tone for the following months.
March 2023 witnessed a more pronounced surge, reaching N43.01 trillion, suggesting a substantial increase of about 2.99 per cent. April 2023 maintained the positive momentum, with credit figures climbing to N43.66 trillion, marking a further increase of approximately 1.51 per cent.
As the months progressed, May 2023 brought another boost, with credit soaring to N44.79 trillion, signifying a rise of about 2.57 per cent and reflecting a robust financial environment and an expanding private sector. June 2023 witnessed a significant leap, hitting N52.81 trillion, indicating a substantial increase of around 17.92 per cent. Analysts attributed this surge to heightened economic activities or strategic investments.
July 2023 continued the upward trend, recording a credit figure of N56.46 trillion, representing a growth of approximately 6.95 per cent and pointing towards sustained economic optimism. August 2023 saw a marginal rise to N56.95 trillion, reflecting an increase of about 0.86 per cent and suggesting stability and ongoing economic transactions.
September 2023 demonstrated a more substantial increase, with credit reaching N59.51 trillion, marking a rise of about 4.49 per cent and hinting at sustained confidence in the economic landscape. October 2023 witnessed a notable surge, hitting N63.57 trillion, suggesting a buoyant economic environment and heightened demand for credit.
November 2023 experienced a dip in the credit figure, recording N59.74 trillion, indicating a decrease of about 6.02 per cent and possibly reflecting a temporary adjustment in credit activities or a response to specific economic factors. Closing the year on a high note, December 2023 showcased a robust credit figure of N62.52 trillion, marking an increase of about 4.66 per cent and highlighting the resilience of the financial sector despite fluctuations throughout the year.