Private Sector Credit Rises N3.51tr As Government Borrowing Drops N7.68trn

Credit allocation in Nigeria’s banking system is shifting towards the private sector, with businesses and households receiving N3.51 trillion in additional credit since May, even as government borrowing from the banking system declined by N7.68 trillion over the same period.

The latest money and credit statistics released by the Central Bank of Nigeria (CBN) showed that private sector credit rose for the third consecutive month to N84.55 trillion in August, while credit to government fell for the third straight month to N32.70 trillion.

Private sector credit increased by N1.13 trillion, or 1.35 per cent, in August from N83.43 trillion in July. The increase followed a N171.8 billion rise in July, when credit to the sector grew from N83.26 trillion in June.

Since May, private sector credit has expanded by N3.51 trillion, representing a 4.33 per cent increase from N81.04 trillion.