From N22.6 trillion in November to N24.6 trillion in December 2022, credit to the government increased monthly (MoM) by 8%.
Similar to this, private sector credit increased MoM by 0.72 percent from N41.5 trillion in November to N41.8 trillion in December 2022.
According to information from the Central Bank of Nigeria, CBN, money and credit statistics, in December 2022, credit to the government and private sector resulted in a net domestic credit of N66.4 trillion.
When compared to N64.2 trillion over the same period in 2022, this indicates an increase of 3.4 percent MoM.
The CBN increased the Monetary Policy Rate (MPR) from 16.5 percent to 17.5 percent at its first Monetary Policy Committee, or MPC, meeting of the year.
This suggests that banks would increase loan interest rates, requiring borrowers of domestic loans from the government, the commercial sector, and individuals to make larger debt service payments.
The MPC observed the banking system’s ongoing resilience, which is demonstrated by the gradual decline in the Non-Performing Loans (NPLs) ratio from 4.9% in November 2022 to 4.2% in December 2022.