•As currency in circulation falls
Banks’ credit to the private sector rose Month-On-Month, MoM, by 4.23 per cent to N36.9 trillion last month from N35.4 trillion in January 2022.
However, currency in circulation fell MoM by 0.27 per cent to N3.29 trillion from N3.25 trillion in January 2022.
Data from the Central Bank of Nigeria, CBN’s, Money and Credit Statistics released yesterday showed that net domestic credit also rose MoM by 4.2 per cent to N51.8 trillion in February 2022 from N49.7 trillion in January 2022, signifying an uptick in economic activities.
Similarly, net credit to the government increased MoM by 4.2 per cent to N14.9 trillion in February 2022 from N14.3 trillion in January 2022.
In the communiqué issued after the latest CBN’s Monetary Policy Committee (MPC) meeting, the committee indicated that the banking sector has sustained resilience, evidenced by the further moderation of Non-Performing Loans (NPLs) to 4.84 per cent in February 2022 from 4.90 per cent in December 2021.
In overall, members of the MPC expressed confidence in the CBN’s regulatory regime and commitment to maintaining stability in the banking system, urging the management to sustain its tight regulatory surveillance.