economy

Currency outside banks fall by 6.4%

By Babaji Komolafe & Elizabeth Adegbesan 

Credit to the economy rose by 16 per cent to N56.5 trillion in five months to May this year driven by a sharp increase in credit to the government.

Meanwhile Currency Outside Banks, COB, fell by 6.4 per cent during the five months period to N2.75 trillion at the end of May from N2.94 trillion at the end of December 2021. 

The Central Bank of Nigeria, CBN, disclosed this in its Money and Credit Statistics which showed that credit to the government overshadowed credit to the private sector during the five months period. 

Read Also:

Soludo says Anambra diversifying to agric-driven economy

Nigeria has a vulcaniser economy where everyone’s patching along — Sowore

Pakistan blackouts choke economy as China power plants go unpaid 

According to the CBN, credit to the government rose by N4.94 trillion or 37 per cent to N18.26 trillion at the end of May from N13.32 trillion at the end of December 2021. 

However, credit to the private sector recorded a lower growth of 8.5 per cent or N3 trillion to N38.2 trillion at the end of May from N35.2 trillion at the end of December 2021. 

Consequently, credit to the economy rose by 7.94 trillion or 16.3 per cent to N56.5 trillion at the end of May from N48.5 trillion at the end of December 2021. 

But on a month-on-month basis, MoM, credit to the economy rose by 3.0 per cent to N56.5 trillion in May from N52.8 trillion in April. 

The growth was driven by a 6.4 per cent MoM increase in credit to the government which rose to   N18.2 trillion in May from N17.1 trillion in April. 

On the other hand, credit to the private sector rose MoM  by N600 billion or 1.5  per cent to N38.2 trillion in May from N37.6  trillion in April 2022.

Registration for CBN, AFF eNaira hackathon opens today

Registration for the 

eNaira hackathon, 

geared towards ideating innovative solutions for the newly launched digital currency, organised by the Africa Fintech Foundry (an innovative hub established to identify and accelerate innovative startups in Africa), in partnership with the Central Bank of Nigeria (CBN), is billed to open today and run till 3rd week in July. 

A statement issued by the organisers said the main event, which is billed to kick-off from August 4, 2022, is part of efforts to drive financial inclusion, facilitate macroeconomic growth and integrate Nigerian economy to the world leading economies through innovation and cutting edge emerging technologies. It
therefore urged interested participants to visit the eNaira Hackathon www.affcbnhack.com to register from today.

With the theme “eNaira – Africa’s Gateway to a Digital Economy,” the hybrid hackathon will bring together teams of talented entrepreneurs, developers, designers, solution developers, problem-solvers, out-of-the-box thinkers, and code magicians from Africa to develop innovative solutions that will drive improved adoption of the eNaira.

Speaking on innovation in Nigeria’s payments system ecosystem, the Governor of the Central Bank of Nigeria (CBN), Mr. Godwin Emefiele recently said: “We cannot deny the fact that the newly introduced CBDC (eNaira) would be necessary in the future to ensure Nigeria is competitive as the world becomes increasingly digital. We have seen in the past few years how digital currencies have opened international economies to individuals who wield them and how seamless they have made trading, buying, investing and other economic activities. 

“We desire to achieve this and more with the eNaira with the underlying goal to boost Nigeria’s economic outlook. Innovators at the hackathon will develop solutions in the areas of international remittance, trans-border payment, blockchain, financial inclusion, and trade (AfCTFA),” he added.

The statement issued by the organisers said the hackathon will address the strategic points to eliminate possible glitches that could hamper smooth transactions being carried out with the eNaira.

Vanguard News Nigeria

Subscribe for latest Videos

Disclaimer

Comments expressed here do not reflect the opinions of vanguard newspapers or any employee thereof.