Government borrowing from Commercial Banks rises by 23% in nine months to N2.1trn
- The three tiers of government has approached commercial bank for laons to fund various projects across the country
- This continuous borrowing has seen the amount of loan from banks rises by over 23 percent from January to September
- Aside to government private sectors operating in agriculture, education, oil and gas among others were given loans
Bank loans to government have risen by 22.59 per cent, hitting N2.17tn as of the end of September 2021 from N1.77tn recorded in December 2020.
This represents a N400bn increase within the nine-month period, the Punch reports.
This was contained in the Central Bank of Nigeria report titled, ‘Deposit Money Bank’s sectoral allocation of credit.’
Source: Getty Images
According to the figures, bank loans to the government rose from N1.88tn as of the end of March 2021 to N2.03tn in June 2021, and N2.12tn in August 2021.
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The report further showed that the DMBs’ total loans to the private sector stood at N22.8tn as of 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, power and energy. Others sectors include construction, trade and general commerce.
The CBN figures also revealed bank loans to real estate sector, finance, insurance and capital market.
Others sectors include education, oil and gas, power and energy, information and communication, transportation and storage and other general businesses.
Buhari borrows over N10 billion daily in the last six years
Meanwhile, each Nigerian is a debtor, owing over N160,000 due to the amount of loan borrowed by President Buhari since he came into power after the presidential election in 2015.
President Buhari has borrowed N21 trillion since July 2015, increasing Nigeria's debt to N33.1 trillion as of March 2021, according to data from the Debt Management Office (DMO).
A breakdown of the debt linked to President Buhari's administration showed that on a daily basis, the country secures over N10 billion within the last six years.
Source: Legit.ng
