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Loan to Private Sector Skyrocket to N75.48tn as Money Supply Hits N106.3tn - CBN

Esther

Loans to Nigeria's private sector have surged by 33.69% to reach N75.48 trillion as of July 2024.


This increase comes alongside a record rise in the country's money supply, which hit an all-time high of N106.3 trillion, according to recent data from the Central Bank of Nigeria (CBN).


Despite these growth figures, the CBN has been implementing stringent monetary policies to combat rising inflation, which currently stands at 33.40%.


In its latest Monetary Policy Committee meeting held in July, the apex bank raised the interest rate to 26.75%. "The increase in loans to the private sector and the surge in money supply reflect a complex economic environment," said Ogaga Ariemu, a financial analyst. "While these figures indicate robust economic activity, they also necessitate aggressive anti-inflationary strategies."


The data also revealed that the Currency in Circulation (CIC) saw a year-over-year increase of 56.18%, reaching N4.053 trillion in July. On a month-on-month basis, the CIC rose by 0.12% from N4.048 trillion recorded in June.


These developments come amid the CBN's tightening of monetary policies aimed at curbing inflation.


The bank's efforts include raising the Lending Facility rate to 31.75% and pegging deposits at 25.75%. As Nigeria navigates this intricate economic landscape, businesses and households are bracing for further inflationary pressures in the coming months.


The CBN's survey indicates that both sectors expect the inflation rate to continue its upward trajectory.




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