Aggregate credit credit to economy rises 5.16% in June, says CBN
The Central Bank of Nigeria (CBN) on Monday said aggregate domestic credit grew in June by 5.16 percent against 7.47 percent in May 2020.
CBN Governor, Godwin Emefiele, who stated this noted that total gross credit increased by N3.33 trillion to N18.90 trillion in June 2020 from N15.56 trillion at end of May last year.
According to the governor, “these credits were largely recorded in manufacturing, consumer credit, general commerce, and information and communication and agriculture, which are productive sectors of the economy.”
The governor also revealed that the banking sector Non-Performing Loans (NPLs) portfolio has declined to 6.4 percent in June 2020 compared with 9.4 percent a year ago.
The decrease in NPLs of the banking industry, the regulator said was due to recoveries, write-offs and disposals of assets by banks.
Emefiele said the decision by the Monetary Policy Committees (MPC) to adjust the benchmark interest rate at its previous meeting “is yielding positive impact as credit growth increased significantly in the economy.”
The regulator on Monday held its benchmark interest rate at 12.5 percent at the end of the MPC meeting, saying it was assessing the impact of the previous rate cut on the eeconomy.