In March, Nigerian banks experienced an 11.93% decrease in loans to the private sector, attributed to the escalating interest rates.
According to data from the Central Bank of Nigeria (CBN), loans to the private sector dwindled to N71.21 trillion by the end of March 2024, a significant drop from N80.86 trillion recorded in February 2024.
Quarterly analysis reveals a 6.66% decline in banks’ private sector credit, plummeting from N76.29 trillion in January 2024.
This decline aligns with the ongoing stringent monetary policies enforced to combat inflation.
As part of these measures, the apex bank elevated the interest rate to 24.75%.
By March 2024, Nigeria’s inflation rate surged to 33.2%, as per the latest data from the National Bureau of Statistics (NBS).
Manufacturers in Nigeria have been vocal about their concerns regarding the continual tightening of the Monetary Policy Rate (MPR) by the CBN.