Nigeria’s credit to its private sector saw a modest rise in October after it slipped to an 18-month low in the previous month, signalling a rebound as monetary authorities slashed key benchmark interest rates for the first time in five years in September.
Private Sector Credit Extension (PSCE) grew 2.6 percent to N74.41 trillion in October, up from N72.53 trillion in the previous month, suggesting a renewed lending appetite to private firms, according to the latest data from the Central Bank of Nigeria (CBN).
The data further revealed that bank reserves dropped from N34.67 trillion in September to N31.58 trillion, representing an 8.9 percent month-on-month decrease, driven more by a liquidity expansion by credit flows than reserve accumulation.