Money Moves: Private Sector Loans Soar to N75.48tn as Nigeria’s Money Supply Skyrockets

Central bank of Nigeria 

According to recent data by the Central Bank of Nigeria (CBN), credit to the private sector is believing showed a marvelous increase. It is now at a whooping N75. 48 trillion, this is an increased from the previous quarter and this has been attributed to the unrelenting efforts of the Nigerian banks to increase their abilities in making loans, this shows why the financial institutions remain central to taking the country to the next level of growth.

At the same time, Nigeria’s overall money supply has reached N106.3 trillion, marking a sharp increase driven by the CBN’s policies and the expansion of commercial banks' balance sheets. The impressive growth in loans, trade credits, and other financial instruments is being seen as a lifeline for businesses navigating the current economic landscape.

Interestingly, this growth comes amidst tighter monetary policies, with the CBN applying pressure to keep inflation in check while still pushing for aggressive lending to stimulate the economy. Analysts have pointed out that commercial banks are now walking a tightrope, balancing the demand for credit with regulatory requirements.

In the short to medium term, the recapitalization of banks will be a key factor, ensuring that these institutions can weather economic volatility while continuing to support Nigeria's ambitious goal of becoming a $1 trillion economy.