Nume Ekeghe
The Central Bank of Nigeria (CBN) has disclosed that banks’ credit to the private sector declined by 12 per cent month-on-month in March 2024 to N71.21 trillion.
However, the CBN said March 2024 saw a 65.54 per cent year-on-year increase compared to N43.01 trillion recorded in March 2023.
The CBN who disclosed this in its money and credit statistics noted that credit to the government declined YoY by 28.83 per cent from NN27.52 trillion in March 2023 to N19.58 trillion recorded in March 2024.
Looking back at previous months, February 2024 recorded N80.86 trillion in credit, while January 2024 witnessed N76.29 trillion, indicating a positive trajectory for lending operations and economic growth.
Reflecting on the preceding year, a breakdown for 2023 revealed a series of fluctuations in credit activities. Starting from January 2023, the credit landscape began at N41.54 trillion, providing a foundation for financial activities.
This figure set the stage for subsequent months, indicating the baseline for lending operations. February 2023 saw a marginal uptick, with credit increasing to N41.75 trillion, marking a modest rise of approximately 0.51 per cent and setting the tone for the following months.
March 2023 witnessed a more pronounced surge, reaching N43.01 trillion, suggesting a substantial increase of about 2.99 per cent. April 2023 maintained the positive momentum, with credit figures climbing to N43.66 trillion, marking a further increase of approximately 1.51 per cent.
As the months progressed, May 2023 brought another boost, with credit soaring to N44.79 trillion, signifying a rise of about 2.57 per cent and reflecting a robust financial environment and an expanding private sector. June 2023 witnessed a significant leap, hitting N52.81 trillion, indicating a substantial increase of around 17.92 per cent. Analysts attributed this surge to heightened economic activities or strategic investments.
July 2023 continued the upward trend, recording a credit figure of N56.46 trillion, representing a growth of approximately 6.95 per cent and pointing towards sustained economic optimism. August 2023 saw a marginal rise to N56.95 trillion, reflecting an increase of about 0.86 per cent and suggesting stability and ongoing economic transactions.
September 2023 demonstrated a more substantial increase, with credit reaching N59.51 trillion, marking a rise of about 4.49 per cent and hinting at sustained confidence in the economic landscape. October 2023 witnessed a notable surge, hitting N63.57 trillion, suggesting a buoyant economic environment and heightened demand for credit.
November 2023 experienced a dip in the credit figure, recording N59.74 trillion, indicating a decrease of about 6.02 per cent and possibly reflecting a temporary adjustment in credit activities or a response to specific economic factors. Closing the year on a high note, December 2023 showcased a robust credit figure of N62.52 trillion, marking an increase of about 4.66 per cent and highlighting the resilience of the financial sector despite fluctuations throughout the year.
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