Private sector credit hits N75.85tn in 9 months, government borrowing rises 90%

Nigeria’s private sector credit soared to N75.85 trillion in September 2024, marking a 30% increase from N59.51 trillion in September 2023, according to Central Bank of Nigeria (CBN) data. This surge underscores a more active lending environment despite economic challenges.

Breakdown of Private Sector Lending

Private sector credit began the year at N76.48 trillion in January, an 84% rise compared to N41.54 trillion in January 2023. The year’s peak occurred in February at N80.86 trillion, a significant 93.7% increase from the same period in 2023.

Subsequent months saw fluctuations:

• March: Dropped to N71.21 trillion amid tighter monetary policies.
• April: Recovered slightly to N72.91 trillion.
• May & June: Stabilized at N74.31 trillion and N73.19 trillion, respectively.
• July: Rose to N75.51 trillion, bolstered by increased SME lending.
• August: Fell slightly to N74.73 trillion before climbing to N75.85 trillion in September.

By contrast, private sector credit in 2023 ranged between N41.54 trillion in January and N59.51 trillion in September, reflecting subdued lending activity.

Government Borrowing Surges

Credit to the Nigerian government experienced a 90% year-on-year increase, reaching N42.02 trillion in September 2024, compared to N22.14 trillion in September 2023.

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Key highlights include:

• January 2024: Started at N23.52 trillion, 11.7% lower than January 2023.
• February: Jumped to N33.93 trillion, a 19.6% increase from February 2023.
• March & April: Declined to N19.59 trillion and N19.98 trillion, respectively.
• May: Rose sharply to N28.38 trillion, reflecting renewed borrowing activity.
• August: Surged to N31.15 trillion, 38.4% higher than August 2023.
• September: Reached N42.02 trillion, driven by debt service and capital projects.

The data highlights Nigeria’s escalating borrowing trend, with 2024 figures showing more aggressive public sector credit activity compared to the relatively stable borrowing patterns of 2023.