Banks' Credit to Private Sector, CPS, rose Month-on-Month, MoM, by about 3.1% or N2.3 trillion to N75.5 trillion in July 2024 from N73.2 trillion recorded in June this year.

Data from the Central Bank of Nigeria, CBN, shows that Year-on-Year, YoY, CPS rose 34 per cent to N75.5 trillion in July 2024 from N56.46 trillion in the corresponding period of 2023.

The CPS includes loans, trade credits and other account receivables and supports provided by banks to the private sector within the period.

CPS is a global measure of the banking sector's balance sheet resilience and contribution to national economic agenda.

Commenting on this development, former President, Chartered Institute of Stockbrokers, CIS, and Managing Director, Arthur Steven Asset Management, Mr Olatunde Amolegbe, said: "The growth in credit to the private sector could be attributable to increase in economic activity. Other factors such as inflation and devaluation could moderate such increase."

Chief Executive Officer, Centre for the Promotion of Private Enterprise (CPPE), Dr. Muda Yusuf, said: "The credit outlook remains cautious, calling for expansive distribution of credits across all tiers of companies and sectors."

According to him: "There are major concerns in terms of distribution of credits across sectors and companies with small businesses, which contribute more to job creation and economic inclusion, not likely to benefit much."

He noted that banks tend to be wary of credit risk concerns associated with lending to small businesses and certain sectors, adding that efforts should be made to drive inclusive and stable credit access to all sectors including growth and employment elastic sectors such as agriculture, manufacturing, real estate, mining and construction among others.