Credit score To Govt Rises By 8% To N24.6trn

Credit score to the federal government rose month-on-month (MoM) by eight % to N24.6 trillion in December 2022 from N22.6 trillion in November.

Equally, credit score to the non-public sector rose MoM by 0.72 % to N41.8 trillion in December 2022 from N41.5 trillion in November.

Knowledge from the Central Financial institution of Nigeria, CBN, cash and credit score statistics, confirmed that the credit score to the non-public sector and the federal government resulted in a internet home credit score of N66.4 trillion in December 2022.

This represents a 3.4 % MoM rise when in comparison with N64.2 trillion within the corresponding interval of 2022.

In its first Financial Coverage Committee, MPC, assembly this yr, the CBN raised the Financial Coverage Charge (MPR) to 17.5 % from 16.5 %.

This means that banks would increase rates of interest on loans leading to extra debt service funds for home loans borrowed by the federal government, non-public sector and people.

The MPC famous the continued resilience of the banking system, evidenced by the progressive enchancment within the Non-Performing Loans (NPLs) ratio from 4.9 per cent in November 2022 to 4.2 per cent in December 2022.