Credit to private sector rises to N11.13tn

Provisional data on the economic report for third quarter 2011 by the Central Bank of Nigeria has shown that the banking systems credit to the private sector has risen by 11.6 per cent to N11.13tn, compared with the 5.6 per cent increase at the end of the preceding quarter.The report released by the apex bank last week stated that the development was attributed largely to the increase in both CBN and Deposit Money Banks claims on the sector. It added that the banking systems claims on the private sector rose by 13.2 per cent over the level at the end of December 2010, owing to the same reason.The report said, At N9.98tn, aggregate banking system credit (net) to the domestic economy, rose by12.1 per cent at the end of the third quarter of 2011, compared with the increase of 8.6 per cent at the end of the preceding quarter. The development reflected, wholly, the 12.3 per cent increase in claims on the private sector.Banking systems credit (net) to the Federal Government, at the end of the review quarter, declined by 7.5 per cent to negative N1.14tn, in contrast to the increase of 14.1per cent in the preceding quarter. The development was accounted for, largely, by the fall in banking systems holdings of Federal Government securities, particularly FGN Bonds.The apex bank said that the growth in the major monetary aggregate was moderate at the end of the third quarter of 2011.It added, Broad money supply, also known as M2, grew by 3.6 per cent, quarter-by-quarter, to N12.62tn at end-September 2011, compared with the growth of 4.5 per cent at the end of the preceding quarter. The development reflected, largely, the 12.1, 3.4 and 26.6 per cent rise in net domestic credit, foreign assets (net) and other assets (net) of the banking system, respectively.Narrow money supply, (M1), at N6tn, also rose by 6.4 per cent, compared with the growth of four per cent at the end of the preceding quarter, reflecting, wholly, the 7.9 per cent increase in its demand deposit component.
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