Banks' private sector Lending surge 13% on CBN's LDR policy

Nigerian banks have advanced loans to the private sector by well over a trillion naira just in 3months to October following the 60-65% Loan to Deposit Ratio Policy of the Central Bank of Nigeria (CBN).

The CBN had adopted the LDR policy to discourage banks’ investments in government securities and force banks expand lending to the private sector to ramp up the struggling economy and boost jobs.

CBN governor, Godwin Emefiele, disclosed this on Tuesday as he also announced the apex bank’s decision to leave all benchmark rates unchanged, including the Monetary Policy Rate (MPR) at 13.5%; Cash Reserve Ratio (CRR) at 22.5%, Liquidity Ratio (LR) as well as the Assymetric corridor around the MPR at +200/–500 basis points.

Emefiele said the CBN was confident of the outcomes of its monetary policies so far and therefore does not see any immediate compelling reasons to adjust rates.

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Addressing the press on the outcomes of the two-day Monetary Policy Committee meeting of the CBN in Abuja, the governor, however, raised concerns on rising inflation, which he attributed to soaring food prices, but was confident that recent policies were good enough to quell the trend in the near term.

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Onyinye Nwachukwu

Onyinye Nwachukwu is the Abuja Bureau Chief of BusinessDay, overseeing coverage across Abuja and Northern Nigeria. With more than two decades of experience in economic and financial journalism, she reports on business, policy, and market trends, linking local developments to the global economy. A fellow of the International Monetary Fund (IMF) and recipient of the P. Vishwanathan Memorial Award for Excellence in Financial Journalism, she is known for her insightful storytelling and interviews with senior policymakers, diplomats, and business leaders. Well traveled and globally minded, Onyinye brings depth and international perspective to her reporting.