Banking & Finance

Banks Borrowing Drops by ₦23.99tr

Nigerian banks’ lending, in the month of March, to the private and public sectors dropped by N23.99 trillion, data from the Central Bank of Nigeria (CBN) has shown.

Analysis of the data indicated that borrowings to the private sector reduced to N71.21tr in March 2024 when compared to the N80.86tr in February, making a N9.65tr difference.

For the public sector, it reduced by N14.34tr or 42.3 per cent to N19.59tr in March from N33.93tr it borrowed in February 2024. This reduction is coming on the heels of improved growth in the economy where credit to the private sector had escalated by 66 per cent compared to the same period in 2023.

According to the CBN, January 2024 started on a high note as credit reached N76.29 trillion, significantly up from N41.54 trillion in January 2023. This upward trend continued into February when it peaked at N80.86 trillion. This decline marks a significant shift from the previous year, reflecting a 29 per cent decrease compared to the year 2023.

January 2024 saw government credit at N36.18 trillion, up from N26.64 trillion in January 2023, showing an initial increase. However, subsequent months witnessed variable reductions, culminating in the substantial drop observed in March.

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