Sanusi: Credit to Private Sector Rises to N12.213tr

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Finance Minister,  Mrs Ngozi Okonjo Iweala
By  Obinna Chima
The total value of banking sector credit to the private sector rose by 9.8 per cent  to N12.213 trillion as at the end of October last year, the Central Bank of Nigeria (CBN) has said.
The amount represented an increase by N244 billion, compared with the N11.969 billion it stood the preceding month.
The apex bank, which disclosed this in its economic report for the month of October 2011, which was posted on its website yesterday, said the development “reflected wholly”, the rise in the Deposit Money Banks’ (DMBs’) claims on the core private sector.
It explained that in comparison with the level at end-December 2010, banking system’s credit to the private sector rose by 24.2 per cent, compared with 13.2 per cent at end-September 2011.
However, the report showed that aggregate banking sector credit to the domestic economy also increased 8.7 per cent to N10.848 trillion at end-October 2011, as against the N9.437 trillion, it stood as in the preceding month.
It said the development largely reflected the 9.8 per cent increase in claims on the core private sector.
It added: “Banking system’s credit (net) to the federal government, on month-on-month basis, fell by 19.2 per cent to negative N1.365 trillion, compared with the decline of 25.9 per cent at the end of the preceding month.
“Over the level at end-December 2010, aggregate banking system’s claims on the federal government also fell by 21.7 per cent, reflecting, largely, the decline in the banking system’s holding of Federal Government securities. The federal government, however, remained a net lender to the banking system at the end of the review month.”
According to the regulator, quasi-money (assets that can be easily converted to cash), declined by 3.7 per cent to N6.374 trillion in the month under review, compared with 0.3 per cent at the end of the preceding month.
It also attributed the development to the fall in time, savings and foreign currency deposits of the DMBs.
The CBN put the total value of currency in circulation, at the end of the month under review at N1.360 trillion.
This, it said, showed an increase by 1.2 over the level at end-September 2011. It said the development wholly reflected the increase in currency outside banks by 2.6 per cent.
Meanwhile, the naira was upbeat against the United State dollar at both the interbank and Wholesale Dutch Auction System (WDAS) yesterday due to forex inflow from multinational oil companies.
At the interbank arm of the forex market, the local currency jumped by 75 kobo to close at N160.05 to a dollar yesterday, as against the N160.80 to a dollar it attained the previous day.
In the same vein, at the WDAS, the naira leapt by 15 kobo to close at N156.85 to a dollar; up from the N157 to a dollar it stood at the end of Monday’s auction. The CBN offered $250 million to the market, the same volume it supplied on Monday.
Dealers disclosed that while Royal Dutch Shell sold $100 million, Total $66 million, Addax Petroleum also sold $10 million to some commercial bank. All these, they said improved the liquidity into the forex market
Finance 2823104163405885966

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