The Central Bank of Nigeria has revealed it infused N7 trillion in form of loans into the Nigerian economy in the last three years.
Mrs. Aishah Ahmad, Deputy Governor of the CBN disclosed this information during the 40th anniversary summit of the Financial Institutions Training Centre (FITC) in Lagos.
Aishah explained that outstanding development in the African economic climate has raised discussion about the potentials in Africa, she further emphasized the importance of a plan which will be the roadmap for economic recovery as a result of recession instigated by the COVID-19 pandemic.
The deputy governor of the apex bank further accentuated that under the governance of Godwin Emefiele, The CBN was dedicated to improving inclusive growth and Lease Rental Discounting (LRD)
Her words : “Over the years the CBN has tried to ensure that we drive lending to the real sector. You would agree with me that the policy under Governor Emefiele over the last few years, has really emphasized on this, not only in terms of intervention funds given but in terms of some of the policies put in place, such as loan to deposit ratio (LDR) which when we instituted it in 2019 till now actually added about N7 trillion or so in loans, and which is quite unprecedented.
In regards to banking industry’s equilibrium, Mrs. Aishah Ahmad elucidated that every banking indicator and metric used to measure stability of the banking system was sturdy.
She added: “We’re very positive about the resilience and the soundness of the banking sector. You see the reports as we give them from time to time from the MPC. Actually, the banking system has been very strategic in support of the recovery based on the impact of COVID.
“Some of the forbearances that we granted to the banking sector has helped to ensure they retain their capacity to lend and it has helped them give succor to their obligors and we are seeing some obligors come out of that forbearance now.
“The financial soundness indicators have been very strong on capital, liquidity, and we’re very proud and we just want to continue to ensure that the bank system continues to provide lending, not just wholesale or commercial lending but to small business because that will be the engine of the economy.”