2024: Government credit surges by N8.4trn May

In a striking economic development, credit extended to the government soared by N8.4 trillion in May 2024, significantly outpacing the growth observed in private sector credit during the same period.

According to data released by the Central Bank of the Nigeria (CBN),, the surge in government credit reflects substantial borrowing to fund various public projects and initiatives.

The CBN data also shows that credit to the government accounts for 86 per cent of fresh domestic credit as the government continues to rely more on local borrowing to fund its expenditures.

On a monthly basis, credit to the government rose by 30 per cent, from N19.98 trillion in April 2024 to N28.38 trillion in May 2024. However, on a year-no-year basis, there was a decrease of 8 per cent in the credit to the government from N30.71 trillion in May 2023 to N28.38 trillion in the same month this year.

While the credit to the government rose by 30 per cent in one month, credit to the private sector increased by two per cent from N72.92 trillion in April to N74.31 trillion in May 2024.

However, on a year-no-year basis, credit to the private sector rose at a higher rate of 66 per cent from N44.79 trillion in May last year to N74.31 trillion in the same month in 2024.

Whilst the central bank did not provide details explaining the reason for the surge in May, the rise may not be unconnected with the government’s increased borrowing channelled towards financing various projects, managing debt obligations, or covering budget deficits.