Bank loans

Bank lending to the private sector in Nigeria increased by N5.58 trillion in 2021

  • Nigerian banks raised their lending rate to the private sector in 2021 by 16.6% as the year elapsed
  • Their loans to the private sector increased by 5.58 trillion naira in December 2021, compared to 30.15 naira recorded in the same period last year
  • CBN data shows increase in line with CBN policy to stimulate economy as businesses recover from COVID-19 effect

Credit to the private sector by Nigerian banks peaked in December 2021, reaching about 35.73 trillion naira against 30.15 trillion naira recorded during the same period in 2020. This represents 5.58 trillion naira naira in 12 months.

This is contained in data released by the Central Bank of Nigeria (CBN).

Central Bank Governor, Godwin Emefiele Credit: Pius Utomi
Source: Twitter

In addition, government loans increased by N1.33 trillion in 2021, reaching N13.73 trillion in December 2021 from N12.4 trillion recorded in the corresponding period of the previous year.

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The increase in lending to private and government bodies may be due to CBN policies aimed at stimulating the economy.

Fintech boom drives loan growth

Additionally, creativity in technology and the rise of finch businesses in the lending space have contributed to the growth.

According to a report by The Punch, the surge in bank lending is in line with the CBN’s directive to provide the real sector with easy access to credit to ensure economic stability as it recovers from the effects of the coronavirus pandemic. COVID-19.

According to data obtained from the CBN, Nigerian banking sector lending to the private sector increased by 5.1 trillion naira, a jump of 16.6%.

A review of the monthly value of credit shows a steady increase throughout the year, except in February when access to credit fell by N100 billion. The figure fell to 30.5 trillion naira from 30.6 trillion naira in January.

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Report Highlight

Lending to the private sector by banks reached 31.4 trillion naira in March, then 31.9 trillion naira in April and 32.6 trillion naira in June.

In July, bank credit to the sector reached N32.8 trillion, continuing the upward trend. In August, it reached 33.4 trillion naira, followed by 34.39 trillion naira in December, 35.3 trillion naira in October and 35.7 trillion naira in November.

243 companies vying for CBN 23 billion 100 for 100 loan scheme

Legit.ng reported that about 243 businesses have applied for a loan scheme with the Central Bank of Nigeria (CBN).

In the end, the Central Bank of Nigeria (CBN) said about 28 companies whose projects met the bank’s conditions for the “100 Percent Policy for Production and Productivity”.

The apex bank said this came after 243 companies submitted applications with projects valued at N321.06 billion for the 100 loan scheme.

Source: Legit.ng