The Central Bank of Nigeria (CBN) has disclosed that banking sector’s credit to the private sector has increased by 1.31 percent to N409.18 billion from N30.55 billion in January 2021 when compared with N30.14 billion recorded at the end of December 2020.
The apex bank in its latest money and credit statistics obtained Wednesday, revealed that net credit by banks to the government increased to N13.2 trillion, higher than the N12.40 trillion it was within the same period.
This is coming as CBN canvasses to improve the flow of credit to households and businesses in key sectors of the economy such as Agriculture, ICT and Manufacturing to enable faster recovery of the economy.
The bank noted net domestic credit increased to N43.76 trillion from 42.55 trillion in December 2020.
Net domestic credit is the sum of net credit to the nonfinancial public sector credit to the private sector, and other accounts.
Quasi money, which is highly liquid assets other than cash that can be quickly converted, stood at N21.76 trillion in the review month, up slightly from N21.72 trillion in December 2020.
Furthermore, demand deposits also climbed from N13.61 trillion the previous month to N13.48 trillion in the review month.
However, the data for currency outside banks dropped to N2.36 trillion from N2.49 trillion it was in December 2020. While banks’ net foreign assets stood at N7.22 trillion as at the end of January, compared with the N7.13 trillion it was the previous month.
Banks’ reserves which measure the cash minimums that must be kept on hand by financial institutions in order to meet central bank requirements climbed to 10.11trillion from N9.87 trillion as at December 2020.
The central bank’s data also showed that its Special Intervention Reserves remained at N317 billion since January 2020.