Aggregate Standing Lending Facility (SLF) granted by the Central Bank of Nigeria (CBN) in January rose by N152.2 billion to N672.8 billion compared with N520.3 billion in the preceding month. This shows an increase of 29.3 percent.
In its monthly Economic Report for January released on Monday, the CBN also noted that the aggregate Standing Deposit Facility (SDF) stood at N2.1252 trillion with daily average of N106.26 billion. This on the other hand, shows an increase of 24.1 percent over the December 2012 level.
The figures in the report indicated that total assets and liabilities of the deposit money banks (DMBs) rose to N2.7426 trillion, showing an increase of 2.1 percent above the level at the end of the December period.
According to the CBN, funds were sourced mainly from increased mobilisation of time, savings and foreign currency deposits. The funds, it said were used, largely, in the extension of credits to the Federal Government, other financial institutions and to increase unclassified assets.
But the aggregate banking system credit (net) to the domestic economy at end-January 2013 rose by 3.8 percent, on month-on-month basis N14.48285 trillion.
This is compared with the growth of 1.9 and 2.0 percent at the end of the preceding month and corresponding period of 2012, respectively.
The report noted that the development reflected, wholly, the 51.2 percent increase in (net) claims on the Federal Government.
Banking system’s credit (net) to the Federal Government, on month-on-month basis, rose by 51.2 percent to negative N648.4 billion, in contrast to the decline of 167.2 percent at the end of the preceding month.
“The development was attributed, largely, to the 20.3 percent increase in the banking system’s holdings of Nigerian Treasury Bills. The Federal Government, however, remained a net lender to the banking system at the end of the review month”.
However, the banking system’s credit to the private sector declined by one percent to N15.1312 trillion, in contrast to the 7.8 and 3.2 percent increase at the end of the preceding month and the corresponding period of 2012, respectively.
ONYINYE NWACHUKWU, Abuja
