Nigerian private sector credit increases

Mar 13, 2012

There has been an increase in the amount of credit to Nigeria's private sector.

There has been an increase in the amount of credit to Nigeria's private sector.

Money and credit statistics from the Central Bank of Nigeria show credit totalled N13.348 trillion (€64 billion) in January 2012 - a 41.7 per cent growth on the N7.781 trillion recorded at the same time the previous year, This Day reported.

Samir Gadio, Emerging Markets Strategist at Standard Bank, explained the growth of credit to the private sector is likely to be supported in March by the "low base effect".

He added that "private sector lending is rebounding from a period of stagnation and risk aversion associated with the systemic distortions in the financial system in 2009 and 2010".

It was also noted that since rescued banks were recapitalised last September, the industry's average Capital Adequacy Ratio increased to 17.12 percent.

Last month, Ecobank announced N16.2 million worth of credit will be distributed across many African countries - including Nigeria - to support private small and medium-sized businesses in a range of sectors.ADNFCR-2976-ID-801316167-ADNFCR