N1.6 trillion more is lent by banks to the private sector.

From N41.5 trillion in February to N43.06 trillion in March 2023, bank credit to the private sector increased monthly (MoM) by N1.6 trillion or 4%.

However, credit to the government decreased MoM by 3% from N28.4 trillion in February to N27.5 trillion in March 2023.

A net domestic credit of N70.6 trillion was generated over the period as a result of lending to the government and the private sector, according to data from the Central Bank of Nigeria, CBN, Money and Credit statistics, which were issued today.

When compared to N70.2 trillion in February 2023, this indicates an increase of 0.56 percent MoM.

Recently, Nigeria secured a World Bank facility worth $800 million as the first tranche of palliatives to be distributed through cash transfers to approximately 50 million Nigerians, who belong to the most vulnerable category in society, in order to mitigate the effects of a planned removal of the petrol subsidy by June, according to Minister of Finance, Budget, and National Planning Zainab Ahmed.

The Federal Government was however encouraged to expand the tax net by the International Monetary Fund, or IMF, in order to limit borrowing and so lessen its debt burden at the IMF/World Bank Spring Meetings in Washington, DC.

Nigeria’s national debt increased annually by 17% to N46.25 trillion in December 2022 from N39.56 trillion in December 2021, according to the Debt Management Office, or DMO.