Commercial banks’ loan to government hits N26trn

The Central Bank of Nigeria (CBN) has revealed that loans from commercial banks to governments at all levels is now at N26 trillion as at January.

CBN stated this in its latest Money and Credit Statistics data published on its website and obtained by Ripples Nigeria on Tuesday.

The net domestic credit, banks’ lending to the private sector is N42.25 trillion.

The new figures now means that the total banks credit to the economy has hit N68.90 trillion in Janaury.

This is a 37.56 percent or N18.8 trillion increase compared to N50.09 trillion in the corresponding period of 2022.

READ ALSO:Banks’ borrowing from CBN hits N4.4tr in 3 months

Breakdown of the CBN’s data indicates that banks’ credit to the private sector increased by N7.07 trillion or 20.09 per cent to N42.25 trillion in January this year from N35.18 trillion in the corresponding period of last year.

Also, the data shows that compared with the December 2022 (N41.80 trillion), banking sector credit to the private sector in January this year increased by N451.63 billion or 1.08 per cent.

Similarly breakdown of the data shows that net credit to government rose by N11.74 trillion or 78.79 per cent to N26.65 trillion in January from N14.90 trillion in the corresponding period of 2022.

On month to month, net credit to government increased by N1.99 trillion to N26.65 trillion in January from N24.66 trillion in the preceding month.

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