Between September 2020 and September 2021, the Nigerian banking sector’s credit to the private sector rose by N4.1tn or 13.8 percent.
As part of an effort to drive lending to the real sector, the CBN had in 2019 directed all banks to maintain a minimum of 65 percent Loans-to-Deposit Ratio by the end of December 2019.
The apex bank had noted that the improvement in lending to the real sector followed the introduction of the 65 percent LDR.
Breakdown by months
The CBN’s money and credit statistics report showed that in September 2020, bank’s credit to the private sector stood at N29.7tn but rose to N33.8tn in September this year.
In October 2020, the sector’s debt to banks fell to N29.1tn, but climbed by N300bn to N29.4tn in November.
The total value of credit provided by banks to the sector rose to N30.4tn in December and N30.6tn in January 2021 but fell by N100bn in February to N30.5tn.
Lending to the private sector rose to N31.4tn in March, N31.9tn in April, N32.1tn in May and N32.6tn in June.
The credit to the private sector rose from N32.8tn in July to N33.4tn in August.
Meanwhile, credit to the government rose by N3.43tn within the same period.
The banking sector’s credit to the government rose from N9.6tn in September 2020 to 13.03tn in September 2021, according to the CBN.