Nigerian banks step up private sector lending
Credit to the private sector increased during the second quarter of 2010, new figures from the country's central bank have revealed.The statistics show lending by banks to the private sector was up by almost one per cent to 0.89 in the three months to the end of June, Business Day reports.
This was the first increase in two years and took the level of private sector credit to around NGN10 trillion (€50.48 billion), while the broad money supply - including deposits and currency currently in circulation - climbed to NGN10.845 trillion in June.
Risk aversion by banks in the country had previously caused the availability of credit to fall, as financial intuitions cut down on their lending to non-government bodies due to problems regarding liquidity and the overall health of their balance sheets.
Last month, it emerged the institution is providing funding to the new Asset Management Corporation of Nigeria, which is to receive NGN1.5 trillion. The money is to be used to buy up bad debts in the country's banking sector.