Government credit increased by 7.6 percent on a month-on-month basis, reaching N36.16 trillion in January 2024, compared to N33.6 trillion in December 2023, according to data from the Central Bank of Nigeria’s Money and Credit Statistics. Concurrently, credit to the private sector saw a 23 percent month-on-month growth to N76.9 trillion in January 2024, up from N62.5 trillion in December 2023. As a result, net domestic credit (NDC) to the economy rose to N113.1 trillion in January 2024, marking a 17.5 percent month-on-month increase from N96.18 trillion in December 2023.
In the previous month, Mr. Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, hinted that Nigeria might explore the Eurobond market later in the year if interest rates decline sufficiently. Analysts at CardinalStone Research, in their macroeconomic update, suggested that such a move could enhance foreign exchange liquidity.
“We anticipate a gradual enhancement in FX liquidity, supported by the government’s intentions to access credit through the Eurobond market. With Nigeria’s favorable credit ratings and the prospect of rate reductions in the United States and other developed markets, we foresee the planned issuance to be successful,” CardinalStone stated.
