Commercial bank loans to the government have risen by 22.59 percent as of the end of September 2021, hitting N2.17 trillion.
This represents a N400 billion increase within the nine-month period, from N1.77 trillion recorded in December 2020.
This is revealed in a report of the Central Bank of Nigeria (CBN) titled, ‘Deposit Money Bank’s sectoral allocation of credit.’
According to the figures, bank loans to the government rose from N1.88 trillion as of the end of March 2021 to N2.03 trillion in June 2021 and N2.12 trillion in August 2021.
The report further showed that the banks’ total loans to the private sector stood at N22.8 trillion as of September 2021.
CBN governor, Godwin Emefiele, had said the banking sector would increase access to finance and credit for households in 2022.
“The policy focus of the bank for 2022 is with a pledge to sustain improved access to finance and credit for households and businesses, mobilise investment to boost domestic productivity, enable faster growth of non-oil exports, and support employment generating activities,” he said.
He noted that the country had been able to contain some of the effects of the COVID-19 pandemic on the economy.
Emefiele emphasized the need for all stakeholders to join the apex bank to build a more resilient economy to better contain external shocks, support growth and enhance wealth creation in key sectors of the economy.
He said a major lesson from the COVID-19 pandemic was that deliberate efforts must be made to diversify the economy base and that the country must do everything possible to reduce the importation of goods into the country.
