- Nigerian banks increased their lending rate to the private sector in 2021 by 16.6 per cent as the year was running out
- Their loans to the private sector grew by N5.58 trillion in December 2021 from N30.15 recorded in the same period last year
- A CBN data shows that the increase is in tune with the CBN policy to boost the economy as companies recover from the COVID-19 effect
Credits to the private sector by Nigerian banks surged to the highest in December 2021, hitting about N35.73 trillion from N30.15 trillion recorded in the same period in 2020. This represents N5.58 trillion in 12 months.
This is contained in data released by the Central Bank of Nigeria (CBN).
Also, loans to the government grew by N1.33 trillion in 2021, spiking to N13.73 trillion as of December 2021 from 12.4 trillion recorded in the corresponding period in the year before.
Nigeria’s Economy increases by 3.40% in 2021, Strongest Growth Under President Buhari: Here Is How It Happened
The surge in credit lending to both the private and government agencies may be due to the CBN’s policies to boost the economy.
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Fintech boom drives lending growth
In addition, creativity in technology and the rise in finch companies in the lending space contributed to the growth.
According to a report by The Punch, the spike in bank lending is in tune with CBN’s directive to provide the real sector easy access to credit so as to ensure economic stability as they recover from the effects of the COVID-19 pandemic.
According to data obtained from the CBN, the Nigerian banking sector’s loan to the private sector grew by N5.1 trillion, representing a 16.6 per cent jump.
An examination of the monthly credit value shows a constant rise all through the year, except February when access to credit dropped by N100 billion. The figure went down to N30.5 trillion from N30.6 trillion in January.
Highlight of the report
Loans to the private sector by banks rose to N31.4 trillion in March, then to N31.9 trillion as of April and, N32.6 trillion in June.
In July, bank credit to the sector grew to N32.8 trillion July continuing the upward swing. By August, it got to N33.4 trillion, followed by N34.39 trillion in December, N35.3 trillion in October, and N35.7 trillion in November.
243 companies fight for CBN’s N23 billion 100 for 100 loan scheme
Legit.ng has reported that about 243 companies applied for a loan scheme by the Central Bank of Nigeria (CBN).
In the end, the Central Bank of Nigeria (CBN) said about 28 companies whose projects pleased the bank’s conditions for ‘100 for 100 Policy for Production and Productivity.’
The apex bank said that this happened after 243 firms submitted applications with projects valued at N321.06bn for the 100 loan scheme.