Banking sector’s credit to private sector rose to N25.47tn in September, setting a new record for the year, a new report by the Central Bank of Nigeria has revealed. Analysts have said the 65 per cent Loan-to-Deposit policy of the CBN has continued to increase banks’ credit to the private sector. In a bid to drive lending to the real sectors, the CBN had directed all banks to maintain a minimum of 65 per cent LDR by the end of December 2019. The money and credit statistics by the CBN specifically showed that banking sector’s credit to private sector rose by 2.61 per cent to N25.47tn in September from N24.8 2tn in August. The statistics also revealed that the banking sector’s credit to the private sector was N22.9tn in January. It increased to N24.2tn in February. The figure dropped marginally to N23.99tn in March and increased by 3.72 per cent to N24.88tn in April. According to the CBN, the credit remained flat at N24.88tn in May and dropped to N24.76tn and N24.29tn in June and July, respectively. The Head of Research, PanAfrican Capital Holding Limited, Mr Moses Ojo, attributed the growth to the 65 per cent LDR policy of the CBN, stressing that the credit to private would grow significantly before the end of 2019. He said, “The growth in credit to private sector is as the result of minimum LDR policy of the CBN and the imposed levy of additional Cash Reserve Requirement equal to 50 per cent of the lending shortfall of the target LDR.”
Punch