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CBN reports surge in Private sector credit by 93%, setting stage for economic expansion

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The Central Bank of Nigeria (CBN) has unveiled a remarkable surge in banks’ credit to the private sector, marking a notable increase of 93.77 percent year-on-year (YoY) to N80.86 trillion in February 2024 from N41.75 trillion reported in the corresponding period of 2023.

This substantial rise underscores a burgeoning confidence in private sector activities and signals a positive trajectory for economic growth in the country.

According to the CBN’s money and credit statistics, credit to the government also experienced a significant YoY increase of 19.30 percent, climbing from N28.43 trillion in February 2023 to N33.92 trillion recorded in February 2024.

This uptick reflects ongoing efforts to bolster government initiatives and underscores the resilience of the financial sector amidst evolving economic landscapes.

Analysis of the financial landscape reveals a robust starting point in January 2024, with credit activities reaching N76.29 trillion, marking a substantial increase from the previous year.

This strong foundation set the stage for continued lending operations, indicating a positive trajectory for economic expansion.

Transitioning into February 2024, the financial sector witnessed a marginal uptick in credit, reaching N80.86 trillion.

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Although modest, this increase of approximately 0.51 percent signifies a steady pace in financial transactions, reaffirming stability in the sector and laying the groundwork for sustained economic growth.

Reflecting on the preceding year, 2023 showcased a series of fluctuations in credit activities, each month contributing to the overall financial landscape.

From a baseline of N41.54 trillion in January 2023, credit figures experienced periodic fluctuations, signalling dynamic shifts in economic activities and investor sentiments.

Throughout the year, fluctuations in credit figures reflected varying levels of economic optimism and strategic investments.

Despite occasional dips, the financial sector remained resilient, closing the year on a high note with a robust credit figure of N62.52 trillion in December 2023, highlighting the enduring strength of Nigeria’s financial landscape.

The surge in private sector credit, coupled with increased lending to the government, positions Nigeria for sustained economic expansion and underscores the vital role of the financial sector in driving growth and development.

As the country navigates through evolving economic dynamics, proactive measures to support lending activities and stimulate investment will remain imperative for fostering a vibrant and resilient economy.

(Edited by Oludare Mayowa; omayowa@globalfinancialdigest.com; Newsroom: +234 8033 964 138)

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