Government borrowing from commercial banks increases 23% in nine months to 2.1 billion naira

• The three levels of government approached the Laons Commercial Bank to finance various projects across the country
• This continued borrowing saw the amount of loans from banks increase by more than 23% from January to September.
• Besides the private sectors of the government operating in agriculture, education, oil and gas, among others, have received loans

Bank loans to the government increased by 22.59%, reaching 2.17 billion naira at the end of September 2021 against 1.77 billion naira recorded in December 2020.

This represents an increase of 400 billion naira over the nine-month period, reports the Punch.

This was in the report from the Central Bank of Nigeria title, ‘Sectoral distribution of the monetary deposit bank’s credit.’

According to the figures, bank loans to the government increased from 1.88 billion naira at the end of March 2021 to 2.03 billion naira in June 2021 and 2.12 billion naira in August 2021.

Read also

EFCC recovers 152 billion naira, 386 million dollars in 2021, official says

The report further showed that DMB’s total lending to the private sector was N22.8 billion in September 2021.

Other loans

The data also showed the amounts of bank loans to other sectors such as industries, agriculture, mining and quarrying, manufacturing, oil and gas, electricity and energy. Other sectors include construction, commerce and general commerce.

The CBN figures also revealed bank loans to the real estate industry, finance, insurance and the capital market.

The other sectors include education, oil and gas, electricity and energy, information and communication, transport and storage and other general activities.

Buhari borrows more than 10 billion naira per day for the past six years

Meanwhile, every Nigerian is a debtor and owes over N 160,000 due to the loan amount that President Buhari has borrowed since coming to power after the 2015 presidential election.

Read also

Cement price drops as Dangote, BUA and Lafarge agree to sell off presidency reveals

President Buhari has borrowed 21 trillion naira since July 2015, raising Nigeria’s debt to 33.1 trillion naira in March 2021, according to data from the Debt Management Office (DMO).

An analysis of the debt linked to President Buhari’s administration showed that the country has secured more than 10 billion naira on a daily basis over the past six years.

Source: Legit.ng