Banking sector credit to the private sector increased by N382 billion to N31.823 trillion as of April, up from the N31.440 trillion it recorded at the end of March.
This was according to the data compiled from the Central Bank of Nigeria’s money and credit statistics for April 2021.
According to the data, the development could be attributed to the aggressive development finance interventions by the central bank since the outbreak of the COVID-19 pandemic.
Also, net credit to the government increased to N12.156 trillion year-on-year, as at the end of April, higher than the N11.994 trillion it was at the end of the previous month.
However, demand deposits, which are funds held in an account from which deposited funds can be withdrawn at any time, fell marginally from N13.834 trillion the previous month, to N13.690 trillion in the review month.
Narrow money supply, which includes all physical monies such as coins and currency along with demand deposits and other assets held by the central bank, dropped to N15.996 trillion in April, compared with the N16.139 trillion it was at the end of the previous month.
But Quasi Money, which are highly liquid assets other than cash, that can be quickly converted, stood at N22.386 trillion in the review month, from N22.079 trillion the previous month.
However, Banks’ Reserves dropped to N10.406 trillion in April, from the N10.529 trillion it was at the end of March.
Meanwhile, as the CBN’s Monetary Policy Committee ends its two-day meeting today, analysts have predicted retention of all the major monetary policy instruments.
The country recorded a Gross Domestic Product growth rate of 0.51 percent (year-on-year) in the first quarter of 2021, (Q1 2021) compared with the 0.11 per cent recorded in the fourth quarter 2020, according to figures the National Bureau of Statistics released on Sunday.
Owing to this, analyst at Lagos-based CSL Stockbrokers Limited, expects the MPC to keep the policy rate stable at 11.5 per cent.
The research and investment firm said despite the growth trajectory witnessed in the first quarter of the year, the economy remained fragile and weaker compared with pre-pandemic level.
“As such, a rate hike might worsen the fundamentals. On the other hand, although inflation retreated in April, risks are firmly tilted to the upside and we expect this to remain a concern for the committee which should stop any consideration of a reduction in rate” it said.