Government Credit Surges 2.0% MoM to N19.98 Trillion in April


Credit to the government experienced a month-on-month (MoM) increase of 2.0%, rising to N19.98 trillion in April from N19.58 trillion in March, according to data from the Central Bank of Nigeria (CBN) Money and Credit Statistics for April.

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Since January, there has been a mixed trend in government credit, with figures standing at N23.5 trillion. Credit peaked at N33.92 trillion in February, then fell to N19.58 trillion in March before rebounding to N19.98 trillion in April.

Similarly, credit to the private sector saw a MoM increase of 2.4%, reaching N72.9 trillion in April from N71.2 trillion in March. This resulted in a 2.31% MoM rise in net domestic credit to N92.9 trillion in April from N90.8 trillion in March.

Analysts at Cowry Asset Management Limited attributed the March decline in government credit to the CBN’s policy rate hike. In their weekly financial market review and outlook, they noted the impact of the Monetary Policy Committee’s decision to raise interest rates to achieve price stability.

Despite predictions of a continuous decline, the April increase in government credit contradicts analysts’ expectations. Cowry Asset projected a continued slow growth in total credit to the government and private sector, with businesses exploring further funding options amidst rising prices. They also anticipated the federal government continuing to explore various funding options to meet project funding and investment obligations with lower debt servicing requirements.

Gbenga Samson
Gbenga Samson
Samson Gbenga Salau [Editorial Board Adviser] Gbenga Samuel Salau is a professional journalist with over 17 years experience in journalism, he is a graduate of Communication and Language Arts, University of Ibadan. On completion of his youth service, he joined The Guardian as a freelance journalist and was later absorbed as a staff. While in the University, he was a campus journalist reporting for the Independence Hall and Faculty of Arts Press Clubs. As a campus journalist, he won the following awards; Independence Hall Press Best News writer; University of Ibadan Union of Campus Journalists’ Best News Reporter/Writer; First Runner-up, Reuben Abati Award for Investigative Journalism; Association of Faculty of Arts Students’ Press Best Reporter; University of Ibadan Union of Campus Journalists’ Best Political Writer; Winner, Reuben Abati Award for Investigative Journalism, and University of Ibadan Union of Campus Journalists’ Best Interviewer. He served the Association of Communication and Language Arts Students, as the Public Relation Officer, the same year he was appointed the News Editor of the Association of Faculty of Arts Students Press. The following session, he was made the General Editor, and a member of the 13-man University of Ibadan Students’ Union Transition Committee. As a reporter in The Guardian, in 2014, he won the Promasidor Quill Award Best Report on Nutrition and DAME Business Reporting category. In the 2015 edition of the Promasidor Quill Award, he won the best Report on Nutrition and Brand Advocate Categories, while in 2016, he won the NMMA Print Journalist of the Year, first runner-up Golden Pen Reporter of the Year and SERAs CSR Awards. Gbenga Salau loves traveling, reading, and listening to songs with good lyrics no matter the genre.

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