Banks Total Credit Rises To N19.33trn
The total credit to the economy rose to N19.33tn in August as a result of the Central Bank of Nigeria’s policy on the Loan to Deposit Ratio.
Central Bank Governor, Godwin Emefiele, disclosed this during the Monetary Policy Committee meeting in Abuja on Tuesday.
He said, “The bank’s policy on Loan to Deposit ratio also resulted in a significant growth in credit to various sectors from N15.57tn to N19.33tn between end-May 2019 and end-August 2020, an increase of N3.77tn.
“This growth in credit was mainly to manufacturing (N866.27bn), consumer credit (N527.65bn), oil and gas (N477.65bn), agriculture (N287.11bn) and construction (N270.97bn).
On monetary aggregates, broad money supply (M3) rose to 6.93 per cent (year-to-date) in August 2020 from 5.23 per cent in July 2020, reflecting the increase in both Net Foreign Assets and Net Domestic Assets.
Similarly, aggregate domestic credit (net) grew by 6.94 per cent in August 2020 compared with 9.43 per cent in July 2020.
He said, so far, total disbursements from the bank’s interventions in the wake of the COVID-19 pandemic amounted to N3.5tn including: real sector funds, (N216.87bn); COVID-19 Targeted Credit Facility (N73.69bn); AGSMEIS (N54.66bn); pharmaceutical and healthcare support fund (N44.47bn); and creative industry financing initiative (N2.93bn).
Under the real sector funds, he said, a total of 87 projects that included 53 manufacturing, 21 agriculture and 13 services projects were funded.
In the healthcare sector, 41 projects which include 16 pharmaceuticals and 25 hospital and health care services were funded, he said.
Under the Targeted Credit Facility, he said, 120,074 applicants had received financial support for investment capital.
“The Agri-Business/Small and Medium Enterprise Investment Scheme (AGSMEIS) intervention has been extended to a total of 14,638 applicants, while 250 SME businesses, predominantly the youths, have benefited from the creative industry financing initiative,” he said.
In addition to these initiatives, he said, the CBN was set to contribute over N1.8tn of the total sum of N2.3tn needed for the Federal Government’s one-year Economic Sustainability Plan, through its various financing interventions using the channels of Participating Financial Institutions.