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The Central Bank of Nigeria (CBN) has reported that credit to the economy increased by N3.5 trillion or 10.1% in five months from N35.5 trillion in November last year to N39.1 trillion in April this year. The apex bank, in its just released Depository Corporation survey report, stated that credit to the private sector grew significantly by N2.27 trillion or 8.6% during the review period, rising to N28.67 trillion in April up from the N26.4 trillion in November last year.
The report further indicated that credit to the public sector (government) rose by N1.33 trillion, to N10.43 trillion, representing 14.6% higher during the five-month period reviewed. A firther analysis of the report indicated that Broad Money Supply (M3 money) rose by 0.19 percent month-on-month to N35.70 trillion in April 2020 while Net Domestic Assets (NDA) increased 1.8 percent to N29.78 trillion as against a 7.52 percent decrease in Net Foreign Assets (NFA) to N5.92 trillion.
The regulatory banking institution attributed the increase in NDA to Net Domestic Credit (NDC) which rose 2.96% month-on-month, peaking at N39.10 trillion. A further decomposition of the NDC reflected an increase of 7.15% month-on-month in credit to the public sector, totalling N10.43 trillion as well as a 1.51% rise in credit to the private sector amounting to N28.67 trillion during the review period.
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