Loans

Bank loans to govt rise by 23% in nine months, hit N2.1tn

Emefiele
Written by Publishing Team

Bank loans to the government increased by 22.59 percent, to reach N 2.17 trillion at the end of September 2021 from N 1.77 trillion in December 2020.

This represents an increase of 400 billion naira over the nine-month period.

This is stated in the report of the Central Bank of Nigeria titled “Sectoral Allocation of Funds Depository Bank of Credit.”

According to the figures, bank loans to the government increased from N1.88 trillion at the end of March 2021 to N2.03 trillion in June 2021, and N2.12 trillion in August 2021.

The report further showed that total DMB loans to the private sector amounted to 22.8 trillion nayti as of September 2021.

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

The Canadian Central Bank figures also revealed bank loans to the real estate, finance, insurance and capital market sectors.

Other sectors include education, oil and gas, power and energy, information and communications, transportation, warehousing, and other public works.

The Governor of the Central Bank of Nigeria, Godwin Emviel, said that the banking sector will increase access to finance and credit for families in 2022.

“The focus of the Bank’s policy for 2022 is to pledge to maintain improved access to finance and credit for households and businesses, mobilize investment to enhance domestic productivity, enable faster growth of non-oil exports, and support job creation activities,” he said.

He noted that the country was 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 main bank to build a more resilient economy to better contain external shocks, support growth and enhance wealth creation in key sectors of the economy.

Emviel said one of the key lessons from the COVID-19 pandemic is that deliberate efforts must be made to diversify the economy’s base.

Emviel said the country should do everything possible to limit the import of goods into the country.

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