Nigerian banks extended N1.3 trillion in credit to private sector players during the first quarter of 2023, bringing the total to N43 trillion.
The figures were obtained from the latest Money and Credit statistics published on the Central Bank of Nigeria (CBN) website.
Year-on-year, the N1.3 trillion credit to the private sector in the first quarter of 2023 showed a slight increase compared to the N1.28 trillion extended in the previous period in 2022.
CBN data showed that total loans to the private sector rose from N41.5 trillion in January 2023 to N41.7 trillion in February, and further increased to N43 trillion in March.
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The CBN has been making significant efforts to ensure more loans are given to the private sector.
In June 2019, CBN introduced a new policy measure, which required Deposit Money Banks to maintain a minimum of 60 per cent Loan to Deposit Ratio.
The objective was to grow the economy by making credit available to the real sector of the economy.
At the end of the last quarter of that year, the Nigerian banking sector recorded the most credit growth of the real sector of the economy in almost five years, hitting N17.1tn in the fourth quarter of 2019.
To further spur growth in the economy, the CBN in October 2019 raised the LDR of banks to 65 per cent, after the September 30 deadline given to the banks to meet the 60 per cent LDR directive.