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Banking sector credit increased by N2.7tr – CBN

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ECONOMY: The road ahead is rough, really rough, Emefiele tells Senate

The banking sector gross credit increased by N2.7trillion in seven months, the Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, said on Friday.

Emefiele, who disclosed this while briefing journalists on the outcome of Monetary Policy Committee (MPC) meeting held in Abuja, noted that the gross credit in the industry moved up by N2trillion between May and December 2019.

He told journalists that the credit was channeled primarily to the employment-stimulating sectors such as agriculture and manufacturing, in addition to increased lending to the retail and Small and Medium Enterprise (SME) segments.

The CBN governor said this is expected to boost domestic output growth in the short to medium-term.

According to him, the Committee further encouraged the management of the bank to be more vigorous in its drive to improve access to credit through its pursuit of the Loan-to-Deposit Ratio (LDR) policy as doing this would help, not only in creating job opportunities for Nigerians.

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He added that it would also help in boosting output growth and moderating prices.

Emefiele said: “To retain the gains from credit expansion and current industry focus on lending, the Committee advised the bank to sustain its Lending to Deposit Ratio (LDR) policy and in addition continue to deploy its Differentiated Cash Reserve Requirements (DCRR) policy which directs new funding for greenfield projects and expansion to critical sectors of the economy.”

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