Private sector credit in Nigeria has hit unprecedented levels, standing at N24.45 trillion as of the end of January 2022, which represents a whopping N4.19 trillion year-on-year increase.
This is according to data obtained from Research from the Central Bank of Nigeria (CBN). Nigeria’s private sector credit has been on a consistent rise since June 2021, the latest being a N68 billion increase from N24.38 trillion recorded as of December 2021 to N24.45 trillion as of the end of January 2022.
Similarly, bank credit to the private sector had increased by N366.14 billion in December 2021 and N687.95 billion in the previous month. On the other hand, banks reduced their credit risk exposure to the oil and gas industry, dropping to 17.3 percent as of January 2022 from 19.35 percent recorded as of the corresponding period of 2021.
However, the increased activities and improved currency in circulation, exacerbated by other social and infrastructural issues have flared inflationary pressure in the country, with food inflation currently standing at 17.11 percent and headline inflation at 15.7 percent.
A further look at the data from the CBN revealed that the downstream oil and gas sector is the highest receiver of bank credit with N4.23 trillion as of January 2022, which accounts for 17.3 percent of the total private sector credit.
The manufacturing sector followed closely with a total credit of N4.19 trillion as of the review period, which accounted for 17.1 percent of the total private sector credit. The services sector with a total credit of N2.38 trillion stands third on the list.