Bank Credit To Private Sector Rises In December
Credit to the private sector reached its highest level in December 2021, reaching ₦35.73 trillion from ₦30.15 trillion recorded as of December 2020.
This represents a ₦5.58 trillion increase in one year. The development is attributed to a combination of the Central Bank’s policies, innovation in technology and the surge in the number of FinTechs in the lending space.
Also, credit to the government also increased by ₦1.33 trillion in 2021.
This is a rise to ₦13.73 trillion as of December 2021 from ₦12.4 trillion recorded as of the previous year.
The increase in bank credit is in line with the CBN’s mandate to give the real sector easy access to credit in order to ensure stability in an economic environment recovering from a recession in the previous year during the COVID-19 pandemic.