Private sector credit rose to a record high of N35.31 trillion as of November 2021, representing N5.16 trillion net new loans between January and November 2021. This is according to data from the Central Bank of Nigeria (CBN) money and credit statistics.
Bank credit to private sector in Nigeria increased by 17% compared to N30.2 trillion recorded as of December 2020. Bank credit in Nigeria has skyrocketed in recent times, owing to a chain of CBN policies and increased activities in the Nigerian lending space, especially with fintechs.
On a month-on-month basis, the private sector credit increased by N694.2 billion in November 2021, moving from N34.62 trillion recorded as of October 2021 to N35.3 trillion in the review period.
The Central Bank voted through the year to keep the benchmark monetary rate (MPR) at 11.5%, which determines the rate of acquiring loans from banks. A move, which was made in order to help stimulate real growth and recovery from the economic recession recorded in 2020 by improving credit to the real sector.
The report from the Central Bank also shows that currency in circulation also rose by 8% in the review period to N3.15 trillion in November 2021 from N2.91 billion as of the end of the previous year.
Also, credit to government increased by 5% to N13.03 trillion as of November 2021 from N12.4 trillion recorded as of the end of the previous year, further showing improved credit facility to the economy.