Credit to the private sector (CPS) from Nigerian banks grew by 3.1% month-on-month (MoM), reaching N75.5 trillion in July 2024, up from N73.2 trillion in June, according to data from the Central Bank of Nigeria (CBN).
Thank you for reading this post, don't forget to subscribe!On a year-on-year (YoY) basis, CPS surged by 34%, increasing from N56.46 trillion in July 2023 to N75.5 trillion in the same period this year.
CPS includes loans, trade credits, and other account receivables provided by banks to support the private sector. It serves as a key indicator of the banking sector’s contribution to the economy and its financial resilience.
Olatunde Amolegbe, former President of the Chartered Institute of Stockbrokers and Managing Director of Arthur Steven Asset Management, attributed this growth to increased economic activity, though he warned that inflation and currency devaluation could moderate the rise.
Dr. Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise (CPPE), noted that while credit distribution is expanding, small businesses remain at a disadvantage due to banks’ concerns over credit risk.
He urged for more inclusive credit access across all sectors, especially in areas like agriculture, manufacturing, and real estate, which drive employment and economic growth.
