Data from the Central Bank of Nigeria (CBN) reveals that loans by Microfinance Banks to the private sector hit N1.12 trillion as at the end of June 2021.
This represents a 115.7 per cent increase compared to N521.25 billion recorded as of the end of 2021.
The figure also shows an aggregate of N602.8 billion new loans.
The CBN data showed that most of the loans were to the private sector of the economy at N1.11 trillion, while N7.26 billion of the loans were to other financial corporations.
Microfinance banks’ claims on the Central Bank, however, fell to N7.74 billion, a 67.9 per cent decrease compared to N24.09 billion recorded as of December 2021.
Meanwhile, banking sector credit to the private sector hit a record high in June 2022, increasing by 1.5 per cent to stand at N39.27 trillion, from N38.68 trillion recorded in the previous month and an 11.6 per cent increase, compared to N35.19 trillion recorded as of December 2021.
Credit to government by commercial banks on the other hand, recorded marginal decline on a month-on-month basis to N17.99 trillion, though a significant increase, compared to N13.33 trillion recorded as of the beginning of the year
