deposit 5000
slot deposit 5000
slot gacor situs toto
togel online
toto 4d
situs slot toto 4ddemo slot gacorslot 88
slot gacor slot gacor
slot gacor
brenjitu
slot gacor
situs toto
situs toto
SITUS TOTO
situs toto
TOTO 4D
SITUS TOTO 4D
SLOT GACOR
https://booking.embuni.ac.ke/live-draw-sydney-hongkong
TOTO 4D
toto togel
slot online
slot gacor
slot gacor
slot pulsa
hongkong lotto
slot gacor
brenjitu
slot pragmatic
situs bola
situs gacor
situs toto
situs slot gacor
slot 4d

FG’s debt to CBN increases by over N11tn

Onwubuke Melvin
Onwubuke Melvin

The Central Bank of Nigeria announced that credit to the Federal Government rose by N11.33 trillion, or 57.11%, reaching N31.15 trillion in August, up from N19.83 trillion in July.

The latest Money and Credit Statistics from the CBN revealed a trend of fluctuating borrowing by the three tiers of government from commercial lenders in recent months.

This pattern underscores the varying financial needs and strategies employed by the governments at federal, state, and local levels.

In June, the credit figure stood at N23.93tn, up from N19.98tn in April, but lower than the N28.38tn reported in May.

The first quarter of the year also showed varying levels of borrowing, with credit reaching N23.52tn in January, peaking at N33.93tn in February, and then dropping to N19.59tn in March.

The steady borrowing trend highlights the Federal Government’s increasing reliance on Central Bank of Nigeria facilities to fund capital projects, debt servicing, and other fiscal obligations.

Economic analysts have expressed concerns about the long-term sustainability of this borrowing, warning that it could exacerbate economic strain and contribute to inflationary pressures.

The report also indicated a decrease of N777.13 billion, or 1.03%, in credit to the private sector, which fell to N74.73 trillion in August from N75.51 trillion in July.

In January, private sector credit was N76.48 trillion, rising to N80.86 trillion in February.

However, it subsequently dropped to N71.21 trillion in March, indicating significant volatility in credit availability for the private sector during this period.

In the following months, it showed modest growth, rising to N72.92tn in April, N74.31tn in May, and settling at N73.19tn by June.

In terms of currency in circulation, the total increased to N4.14 trillion in August, up from N4.05 trillion in July. This reflects a rise of N91.08 billion, or 2.25%.

Afrinvest research explained that the CBN was in a difficult position, trying to balance inflation control with growth stimulation.

Additionally, the cash reserve ratio for commercial banks was increased to 50%, while the ratio for merchant banks was raised to 16%.

This adjustment aims to enhance liquidity management within the banking sector.

“While these policies may help control inflation, they also risk further tightening liquidity in the private sector and increasing borrowing costs, which could slow down economic growth,” Afrinvest warned.

The firm further advised that Nigeria requires a more balanced approach to fiscal management, emphasizing the importance of stimulating private sector activity to achieve sustainable economic development.


TAGGED:
Share this Article
Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

situs totoslot thailand situs totoslot gacor situs toto slot online situs toto demo slot gacor situs slot gacorsitus 4d situs totoslot gacorslot gacorslot gacorslot gacorslot gacor
slot gacor
slot gacor situs toto
togel online
toto 4d
situs slot slot demo pgslot 88
slot gacor slot gacor
slot gacor
brenjitu
situs toto
situs toto
SITUS TOTO
toto macau 4d
TOTO 4D
SITUS TOTO 4D
SLOT GACOR
https://booking.embuni.ac.ke/live-draw-sydney-hongkong
TOTO 4D
toto togel
slot online
slot gacor
slot pulsa
hongkong lotto
slot gacor
slot gacor
slot pragmatic
situs bola
situs gacor
situs toto
situs slot gacor
situs totoslot gacordemo slot situs slot gacor
slot66
slot gacor
situs slot gacor
slot gacor
scatter hitam
scatter hitam
slot gacor scatter hitam
scatter hitam
situs slot gacor pulsa
situs baru slot gacor