Banks in Nigeria lending more money to private sector

Dec 27, 2012

Private sector lending has increased rapidly in Nigeria.

New data has revealed that banks in Nigeria are lending more money to businesses in the private sector, despite the continuing tough economic climate.

The Central Bank of Nigeria (CBN) said there has been a massive rise in credit during November, with the amount lent going up by 24.2 per cent compared to November 2011, All Africa reports.

Major improvements were also witnessed in data from other key financial sector indicators, which the CBN said points to a sense of general wellbeing in the financial system as a whole.

For instance, Net Foreign Assets of banks in the country grew by 31.9 per cent, currency in circulation was boosted to the tune of 2.87 per cent and currency outside banks also showed a marginal improvement.

The CBN attributed this new positivity to the Cashlite policy that was recently introduced in Nigeria.

There was also good news for members of the public in the country recently, as the CBN announced earlier in December that it is removing charges from ATMs across all banks.