Commercial banks lent out a total of N26.8 trillion as of June 2022 up from the N24.378 trillion lent out to the private sector as of December 2021, representing a 10.15 per cent growth in 6 months.
Deposit Money bank lending to the private sector was N21.89 trillion as of June 2021 thus adding N5 trillion in loan growth in one year, representing the highest on record so far.
Nigeria’s central bank has over the last 5 years pursued an aggressive policy of lending to the private sector, expecting that this will help spur economic growth in the real sector, while also creating jobs. Loans to the private sector were just N15.7 trillion as of December 2015 thus around N11 trillion has been added in under 7 years.
Further insight into the data reveals the Manufacturing sector has for the first time led the pack as the sector with the largest proportion of loans. Total loans to the manufacturing sector printed at N4.53 trillion or 16.9 per cent of the total.