Nigerian banks handed over N5.1 trillion in credit to private sectors players in 2021 as total credit to private sector now stands at N36.7 trillion, IgbereTV reports.
The figure is according to the Central Bank of Nigeria (CBN) latest Money and Credit statistics published on its website.
On a year-on-year basis, credit to the private sector rose by N5.6 trillion, from N30.1tn recorded in December 2020 to N35.7 trillion in December 2021.
According to CBN data, total loans to private sector grew from N30.6tn in the first month of 2021 to end the year N35.7tn by December representing 16.67 per cent increase.
Except for February, the CBN’s drive to ensure commercial banks offer more loans to companies was evident throughout the year.
From January N30.6 trillion private sector loans it increased to N30.5 trillion indicating a drop of N100
Lending picked to N31.4tn in March, further to N31.9tn in April, N32.1tn in May, and N32.6tn in June.
The climb continued in July as credit to the sector rose to N32.8tn. It increased to N33.4tn in August, N34.39tn in September, N35.3tn in October and N35.7tn in November.
CBN has been in a serious push to ensure more loans are given to private sectors.
In June 2019, CBN introduced a new policy measure, which required Deposit Money Banks to maintain a minimum of 60 per cent Loan to Deposit Ratio.
The objective was to grow the economy by making credit available to the real sector of the economy.
At the end of the last quarter of that year, the Nigerian banking sector recorded the most credit growth of the real sector of the economy in almost five years, hitting N17.1tn in the fourth quarter of 2019.
To further spur growth in the economy, the CBN in October 2019 raised the LDR of banks to 65 per cent, after the September 30 deadline given to the banks to meet the 60 per cent LDR directive
