Total credit to economy rises by N290bn to N19.54tn

The total credit granted by lenders to support the economy from the end of August to 13th November advanced from N19.33 trillion to N19.54 trillion, equivalent to 1.01% growth, the Central Bank of Nigeria (CBN) said on Tuesday.

CBN Governor Godwin Emefiele disclosed at a media briefing in Abuja that the regulator’s stance on Loan-to-Deposit Ratio (LDR) for banks alongside its support programmes across economic sectors helped achieve the growth.

Lenders’ aggregate exposure to the economy since the LDR policy launch last May lifted by N3.97 trillion, relative to the N15.56 trillion balance reported at inception.

Manufacturing accounted for N738 billion of the sum, construction N291 billion, ICT N231 billion, general commerce N874 billion, agric and forestry N301 billion among others.

Read also: Nigeria’s economy on the path to recovery – Osinbajo’s aide

Deposit money banks in the country availed 86.23% of gross loans and advances to customers topping one million at interest rates below 20% as of October, a 76.43% improvement over the July 2019 figure.

“The committee recognised the supportive developmental roles of the CBN towards addressing some of the structural issues in the economy.

“The MPC specifically expressed optimism on the future impact of the disbursements from agri-business/Small and Medium Enterprise Investment Scheme (N92.90 billion to 24,702 beneficiaries), Anchor Borrowers Program by the sum of N164.91 billion to 954,279 beneficiaries and COVID-19 Targeted Credit Facility to household and SMEs (N149.21 billion to 316,869 beneficiaries),” the CBN chief said.

Borrowers will be looking to increasing support from banks in the near time by virtue of the CBN holding of key interest rate at 11.5% on Tuesday firm up growth.

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