Banking sector credit to the private sector dropped slightly year-on-year by N55.7 billion to N23.083 trillion as of November 2018, from the N23.138 trillion it was at the end of October, 2018.
Also,
net credit to government fell to N2.980 trillion as at the end of
November, lower than the N3.756 trillion it was at the end of October
2018.
This was gathered from the latest Central Bank of Nigeria (CBN) money and credit statistics for November 2018.
Also,
narrow money supply (M1), which includes all physical monies such as
coins and currency along with demand deposits and other assets held by
the central bank dropped to N10.689 trillion at the end of the month
under review, as against the N11.241 trillion recorded the previous
month.
But currency-in-circulation increased in the review period
to N2.100 trillion, compared with the N1.956 trillion it was the
previous month.
The data showed that currency outside banks
increased to N1.712 trillion as of the review month, up from the N1.602
trillion it was the previous month.
However, while Banks Reserves
dropped to N4.306 trillion from the N5.028 trillion it was at the end
of October 2018, Quasi Money, which are highly liquid assets other than
cash, that can be quickly converted, stood at N14.775 trillion as at the
review month, from N14.800 trillion.
In addition, demand
deposits, which are funds held in an account from which deposited funds
can be withdrawn at any time without any advance notice to the
depository institution fell marginally from N9.640 trillion the previous
month, to N8.978 trillion in the review month.
The credit
statistics also revealed that CBN bills held by money holding sectors
improved to N6.333 trillion, from N5.984 trillion the previous month. As
part of efforts to encourage lending to the private sector, the CBN had
introduced the real sector support facility (RSSF). The facility was
expected to boost investment and provide low cost funding for
businesses.
The activities covered under the scheme are
Greenfield (new) and expansion (Brownfield) projects in manufacturing,
agriculture and other related sectors approved by the CBN.
In his
outlook for 2019, CBN Governor, Mr. Godwin Emefiele, had predicted that
monetary policy stance would remain judicious, research driven,
adequate and supportive of the real economy subject to underlying
fundamentals.
He pointed out that the current tight monetary
policy stance was expected to continue in the near-term, especially in
view of rising inflation expectations and exchange market pressures.
“Though
we will act to appropriately adjust the policy rate in line with
unfolding conditions and outlooks, the CBN will continue to ensure that
the policy interest rate is delicately set to balance the objectives of
price stability with output stabilisation.
“Though the CBN has so
far managed to maintain exchange rate stability, the current capital
flow reversals from emerging markets are expected to continue to exert
considerable pressure on market rates.”
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