The steady borrowing trend highlights the Federal Government’s growing reliance on CBN facilities to fund capital projects, debt servicing, and other fiscal obligations.
In January, private sector credit was N76.
48tn but rose to N80.86tn in February.
Afrinvest research explained that the CBN was in a difficult position, trying to balance inflation control with growth stimulation.
“While these policies may help control inflation, they also risk further tightening liquidity in the private sector and increasing borrowing costs, which could slow down economic growth,” Afrinvest warned.
The firm further advised that Nigeria needed a more balanced approach to fiscal management, stressing the need to stimulate private sector activity to achieve sustainable economic development...
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