Banks are increasing lending to the private sector with an average monthly N1.6 trillion facility over the past two months.
The N1.6 trillion pushed credits to the private sector to N74.31 trillion.
Latest data from the Central Bank of Nigeria (CBN) indicates that credit to the private sector (CPS) rose by 65.9 percent or N29.52 trillion to N74.31 trillion last May compared to N44.79 trillion recorded in the same period last year.
A month-on-month breakdown shows sustained growth in lending over the past two months with additional credits of N1.39 trillion and N1.71 trillion in May and April 2024 respectively.
The CPS includes loans, trade credits, other account receivables, and banks’ support to the private sector within a period.
The CPS is a global measure of the banking sector’s balance sheet resilience and contribution to the national economic agenda.
The growth in lending and support to the private sector underlines the resilient balance sheet of banks and their responses to the CBN’s push for increased lending to bolster economic activities.
The data illustrate the importance of the banking sector emerging as the backbone of the country’s economic renewal agenda.
Banks’ lending and support to the private sector rose from N71.21 trillion in March 2024 to N72.92 trillion in April. They rose to N74.31 trillion in May 2024, representing a month-on-month increase of 1.9 percent and 2.4 percent for May and April 2024 respectively.
