Nigerian banks’ loans to private sector declined by 11.93 per cent in March amid rising interest rates.

Data from the Central Bank of Nigeria, CBN, showed that loans to the private sector dropped to N71.21 trillion at the end of March 2024 compared to N80.86 trillion in February 2024.

On a quarter-on-quarter basis, banks’ private sector credit also decreased by 6.66 per cent from N76.29 trillion in January 2024.

The development comes amid the continued tightening of monetary policy measures to curtail inflation.

The apex bank raised the interest rate to 24.75 per cent.

Nigeria’s inflation rate increased to 33.2 per cent by March 2024, according to the latest data from the National Bureau of Statistics, NBS.

Manufacturers in Nigeria have continued to lament the continued tightening of the MPR by the CBN.

Nigerian banks’ loans to private sector drops by 11.93% in March – CBN