Banking sector credit to private sector decreases

The total value of Nigeria’s currency in circulation jumped year-on-year to N1.811 trillion at the end of March 2016, compared with the N1.712 trillion in circulation at the end of February.

According to the credit statistics for the month of March released by the Central Bank of Nigeria, the banking sector credit to the private sector fell slightly year-on-year to N18.882 trillion at the end of March, compared with the N18.990 trillion it stood the previous month.

The data also revealed that broad money (M2), which generally is made up of demand deposits at commercial banks and monies held in easily accessible accounts fell marginally year-on-year from N20.489 trillion as at February, to N20.470 trillion at the end of March.

Similarly, narrow money (M1), which includes all physical monies such as coins and currency along with demand deposits and other assets held by the central bank reduced year-on-year to N9.041 trillion in the review month, as against the N9.059 trillion recorded the previous month.

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But currency outside banks increased from N1.377 trillion in February, to N1.441 trillion as at the end of March.
The central bank data showed that the total amount of banks’ reserves with the central bank increased from N3.384 trillion the previous month, to N3.947 trillion.

However demand deposits, which are funds held in an account from which deposited funds can be withdrawn at any time without any advance notice to the depository institution fell from N7.682 trillion in February, to N7.599 trillion in the month under review.

The latest central bank’s money and credit statistics also revealed that quasi money, which is made up of highly liquid assets that can easily be converted to cash did not move as it maintained its previous month’s value of N11.429 trillion.