Central Bank of Nigeria voices lending fears

Sep 17, 2010

The Central Bank of Nigeria is worried about how a low level of lending by financial institutions is affecting the country's economy.

Speaking at a conference in London, Governor Sanusi Lamido Sanusi told Reuters slow growth in bank lending is "a major worry". "We would like to get more money into the real economy," he remarked, adding the rate of lending "is not growing as fast as we would like it to grow" among finance providers

The bank is due to hold its next Monetary Policy Committee meeting next Tuesday and Mr Sanusi Lamido Sanusi was quoted as saying the focus of the gathering will be to discuss "the relative balance of inflation and expenditure". According to the news provider, growth of bank credit to Nigeria's private sector remained virtually unchanged at 0.3 per cent throughout the first half of 2010.

Business Day recently reported Nigeria's central bank as saying the end of universal banking in the nation is to benefit financial institutions, as trade will increase.