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Credit to the private sector sees sustained growth

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Central Bank of Nigeria Office
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SAT, FEB 03 2024-theGBJournal| According to the Central Bank of Nigeria (CBN), credit to the private sector (CPS) increased by 49.8% y/y to N62.52 trillion in December (December 2022: N41.74 trillion), resulting in a CPS average of N52.19 trillion in 2023FY (2022FY: N38.95 trillion).

The sustained growth in CPS reflects the impact of the CBN’s enforcement of the 65.0% loan-to-deposit ratio and improved domestic macroeconomic conditions relative to 2022.

Consequently, the broad money supply increased by 51.0% y/y to N78.74 trillion in December (December 2022: N52.16 trillion), aligning with growth in both narrow money (+43.4% y/y) and quasi-money (+56.6% y/y).

In addition, the currency in circulation increased by 21.3% y/y to N3.65 trillion (December 2022: N3.01 trillion).

Looking ahead, we believe the improvement of domestic economic activities and the re-enforcement of the CBN’s limit on the loans-to-deposits (LDR) macro-prudential ratio for deposit money banks (DMBs) will continue to compel commercial banks to generate risky assets over the short to medium term.

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Access Pensions, Future Shaping
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