Credit to Government, Private Sector Up 49.77%  to N62.5tn YoY

Nume Ekeghe

The Central Bank of Nigeria (CBN) has disclosed that banks’ credit to the economy rose by 49.77 per cent Year-on-Year (YoY) to N62.52 trillion in December 2023 from N41.74trillion reported in the corresponding period of 2022.

Data from the CBN’s Money and Credit Statistics showed that credit to the private sector stood at N62.52 trillion for the month of December, second to the highest recorded last year, with October recording highest with N63.57 trillion.

A breakdown for 2023 showed that January started off with N41.54 trillion, providing a foundation for financial activities. This initial figure set the stage for subsequent months, indicating the baseline for lending operations. February saw a marginal uptick, with credit increasing to N41.75 trillion. This modest rise of approximately 0.51 per cent hinted at a steady pace in financial transactions, setting the tone for the following months.

March witnessed a more pronounced surge, reaching N43.01 trillion. Analysts said the substantial increase of about 2.99 per cent hinted at growing economic activities and a heightened demand for credit in various sectors. Continuing the positive trajectory, April showed a credit figure of N43.66 trillion, marking a further increase of approximately 1.51 per cent.

The upward trend, analysts posited, suggested sustained confidence in the economy. May 2023 brought another boost, with credit reaching N44.79 trillion, signifying an increase of about 2.57 per cent. The consistent climb reflected a robust financial environment and an expanding private sector. June witnessed a significant leap, hitting N52.81 trillion. “This substantial increase of around 17.92 per cent indicated a surge in credit demand, possibly linked to heightened economic activities or strategic investments, “said a market watcher.

July continued the upward trend, recording a credit figure of N56.46 trillion, representing a growth of approximately 6.95 per cent. The consecutive monthly increases pointed towards sustained economic optimism.

August saw a marginal rise to N56.95 trillion, reflecting an increase of about 0.86 per cent. While relatively modest, the growth suggested stability and on-going economic transactions.

September demonstrated a more substantial increase, with credit reaching N59.51 trillion, marking a rise of about 4.49 per cent. This upward trajectory hinted at sustained confidence in the economic landscape. October witnessed a notable surge, hitting N63.57 trillion. The increase of approximately 6.81 per cent, according to analysts, suggested a buoyant economic environment and a heightened demand for credit.

November experienced a dip in the credit figure, recording N59.74 trillion. This decrease of about 6.02 per cent may indicate a temporary adjustment in credit activities or a response to specific economic factors. Closing the year on a high note, December showcased a robust credit figure of N62.52 trillion, marking an increase of about 4.66 per cent.

Market players believe the year-end surge was an index of a positive economic outlook and financial activities gearing up for year 2024.