The Central Bank of Nigeria (CBN) said Other Financial Institutions (OFIs); comprising Microfinance Banks, Development Banks, Merchant banks, and mortgage banks’ contributing credit to the government recorded an increase of 35 percent in the first half of 2022 (H1 ’22).
According to the Money and Credit Statistics for June 2022 released by the financial regulator, credit to the government rose to N17.9 trillion at the end of June 2022 from N13.3 trillion at the end of December 2021.
The report shows that the growth rate in banking sector credit to the government was faster than private sector credit, though the absolute volume of private sector credit remains higher.
Between January and December 2021, the Nigerian banking sector credit to the private sector rose by N5.1tn or 16.67 percent
At N39.3 trillion in H1’22 credit to the private sector grew by 11 percent from N35.2 trillion as of December 2021.
Meanwhile, net credit to the economy rose to N57.2 trillion at the end of June 2022 from N44.2 trillion at the end of December 2021, representing 29 percent growth in H1’22.
