The country’s real estate and construction companies were successful in obtaining loans totaling N2.26 trillion in just eight months.
The Punch reported that the money borrowed from the banks was used as capital to expand the sector’s services.
The amount of loans obtained climbed from N1.90 trillion to N2.26 trillion between November 2022 and June 2023, a rise of 18.9%.
This new figure is in spite of the central bank’s decision to raise the benchmark interest rate eight times in a row, from 11.5 percent in June of last year to 18.75 percent in June of this year, as part of efforts to control inflation and remove excess liquidity from the market.
The construction firm acquired even more spectacular credit facilities at N1.51tn, while the real estate sector obtained loans for N755bn, according to the Central Bank of Nigeria’s Sectoral Analysis of Deposit Money Banks’ Credit.
According to CBN data, loans to real estate companies increased from N712 billion to N755 billion, or 44.4%, during the same time that loans to construction companies increased from N1.19 trillion to N1.51 trillion.
According to a monthly breakdown, N1.80 trillion was borrowed in December, N1.78, trillion in January, N1.82, trillion in February, trillion in March, trillion in April, and trillion in May.
The country’s economy has been suffering as a result of the benchmark interest rate increase, which exacerbated the housing problem. Additionally, it has caused investors to take a watch-and-see approach as the prices of buildings continue to skyrocket.
