Bank loans to govt hits N2.1trn in 9 months

Bank Loans To Govt Increase By 23% In Nine Months, Now N2.1trn - Economic  Confidential

Bank loans to the government rose by 22.59 per cent to N2.17 trillion as at the end of September 2021 from N1.77 trillion recorded in December 2020.

This represents a N400 billion increase within the nine-month period.

This was contained in the Central Bank of Nigeria (CBN) report on ‘Deposit Money Banks (DMBs) sectoral allocation of credit.’

According to the data, bank loans to the government rose from N1.88 trillion as of the end of March 2021 to N2.03 trillion in June 2021, and N2.12tn in August 2021.

The report further showed that the DMBs’ total loans to the private sector stood at N22.8 trillion as of September, 2021.

The data, according to Economic Confidential, also showed the amounts of bank loans to other sectors such as industries, agriculture, mining and quarrying, manufacturing, oil and gas, power and energy. Others sectors include construction, trade and general commerce.

The CBN figures also revealed bank loans to real estate sector, finance, insurance and capital market.

Others sectors include education, oil and gas, power and energy, information and communication, transportation and storage and other general businesses.

The Governor, Central Bank of Nigeria, Godwin Emefiele, had said the banking sector would increase access to finance and credit for households in 2022.

“The policy focus of the bank for 2022 is with a pledge to sustain improved access to finance and credit for households and businesses, mobilise investment to boost domestic productivity, enable faster growth of non-oil exports, and support employment generating activities,” he said.

He noted that the country had been able to contain some of the effects of the COVID-19 pandemic on the economy.

He stressed the need for all stakeholders to join the apex bank to build a more resilient economy to better contain external shocks, support growth and enhance wealth creation in key sectors of the economy.

Emefiele said a major lesson from the COVID-19 pandemic was that deliberate efforts must be made to diversify the economic base.

Emefiele said the country must do everything possible to reduce the importation of goods into the country.

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