Bank loans

Bank lending to government rises 23% in nine months to N2.1tn

Bank loans to the government increased by 22.59%, reaching N2.17 billion at the end of September 2021 against N1.77 billion recorded in December 2020.

This represents an increase of 400 billion naira over the nine-month period.

This was in the Central Bank of Nigeria report titled “The Sectoral Allocation of Depository Bank Credit”.

According to the figures, bank lending to the government increased from 1.88 billion naira at the end of March 2021 to 2.03 billion naira in June 2021 and 2.12 billion naira in August 2021.

The report further showed that total DMB lending to the private sector stood at N22.8 billion as of September 2021.

The data also showed the amounts of bank loans to other sectors such as industries, agriculture, mining and quarrying, manufacturing, oil and gas, power and energy. Other sectors include construction, trade and general trade.

The CBN figures also revealed bank lending to the real estate, finance, insurance and capital market sectors.

Other sectors include education, oil and gas, power and energy, information and communication, transportation and storage, and other general activities.

The Governor of the Central Bank of Nigeria, Godwin Emefiele, had said that the banking sector would increase access to finance and credit for households in 2022.

“The bank’s policy for 2022 is to commit to maintaining better access to finance and credit for households and businesses, mobilizing investments to boost national productivity, enabling faster growth of non-oil exports and supporting job-generating activities,” he said. noted.

He noted that the country had been able to contain some of the effects of the COVID-19 pandemic on the economy.

He stressed the need for all stakeholders to join the apex bank in building a more resilient economy to better contain external shocks, support growth and enhance wealth creation in key sectors of the economy.

Emefiele said a major lesson from the COVID-19 pandemic was that deliberate efforts must be made to diversify the base of the economy.

Emefiele said the country must do everything possible to reduce the import of goods into the country.

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