Nigerian banks’ credit to the private sector grew by 4.23 per cent MoM to N36.9 trillion last month from N35.4 trillion in January 2022, data from the country’s central bank showed on Tuesday.
Despite this, the currency in circulation fell from N3.25 trillion in January 2022 to N3.29 trillion in January 2022, a 0.27 per cent decline.
According to the Central Bank of Nigeria’s Money and Credit Statistics published yesterday, net domestic credit increased MoM by 4.2 per cent to N51.8 trillion in February 2022 from N49.7 trillion in January 2022, indicating increased economic activity.
A 4.2 per cent shift in MoM was also recorded in net credit to the government in February 2022, up from 14.3 trillion in January 2022.
As indicated in the communiqué issued after the latest Monetary Policy Committee (MPC) meeting, the banking sector has maintained its resilience, reflected in the further moderation of Non-Performing Loans (NPLs) to 4.84 per cent in February 2022, down from 4.90 per cent in December 2021.
Members of the MPC express confidence in the CBN’s regulatory regime and commitment to banking stability, urging the management to maintain the CBN’s tight regulatory oversight.