Nigeria’s private sector saw a substantial boost in loans, with a notable 33.69 percent rise to N75.48 trillion as of July 2024, reflecting a broader trend of increased money supply across the country.
The Central Bank of Nigeria’s recent monetary policy measures seem to have coincided with this surge, despite their aim to tighten the financial environment.
Thhe latest CBN data showed that this figure marks a sharp jump from N56.46 trillion recorded in June 2023.
On a monthly basis, the growth in private sector loans was also significant, increasing by 3.13 percent from N73.19 trillion in June 2024.
The broader money supply in Nigeria also saw an unprecedented rise, hitting N106.3 trillion in July 2024.
This represents a staggering 62.66 percent increase compared to the N65.33 trillion recorded in July 2023.
Additionally, the currency in circulation followed this upward trend, reaching N4.053 trillion in July 2024.
This figure shows a 56.18 percent year-on-year increase from July 2023, and a slight month-on-month rise of 0.12 percent from N4.048 trillion in June 2024.
This surge in financial activity comes at a time when the CBN has been actively tightening monetary policies.
In its July Monetary Policy Committee meeting, the apex bank raised the interest rate to 26.75 percent in an effort to combat inflation, which currently stands at 33.40 percent.
