Credit to Government by Banks Hit N42trn in September – CBN

The Central Bank of Nigeria (CBN) says credit extended to the government by banks surged to N42.02 trillion in September 2024, representing a 78.6 percent increase from N23.52 trillion in January.

Credit to the government typically includes loans, bonds, and other forms of financial support banks and financial institutions provide to governments.

According to data from the CBN, credit to the government experienced fluctuations from January through September.

The figure stood at N23.52 trillion in January, jumping to N33.93 trillion in February before falling to N19.59 trillion in March.

The apex bank said credits to the government slightly rose to N19.98 trillion, followed by a significant increase to N28.38 trillion in May.

By June, according to the data, the figure declined to N23.93 trillion and further decreased to N19.83 trillion in July.

The trend shifted upward again in August, with credit reaching N31.15 trillion and finally peaking at N42.02 trillion in September.

Amid an uptick in government borrowing, the CBN data showed that credit to Nigeria’s private sector fell by 1 percent between January and September this year.

The data said credit to the private sector started the year at N76.48 trillion in January, rising to N80.86 trillion by February. In March, however, it declined to N71.21 trillion and rose marginally to N72.92 trillion in April.

By May, credit increased by 2 percent, reaching N74.31 trillion, followed by N73.19 trillion in June and N75.51 trillion in July. In August, the amount slightly dropped to N74.73 trillion before edging up to N75.84 trillion in September.