The Central Bank of Nigeria (CBN) has reported a big rise in loans to the Federal Government. In August, these loans added up to N11.33 trillion, or 57.11%, bringing the total to N31.15 trillion, up from N19.83 trillion in July.
The CBN’s recent Money and Credit Statistics show that this change comes from the three levels of government borrowing more from banks in recent months, but the amount has been changing.
In June, the loans were N23.93 trillion, higher than N19.98 trillion in April but lower than N28.38 trillion in May. During the first three months of the year, loans were N23.52 trillion in January, reached a high of N33.93 trillion in February, and then fell to N19.59 trillion in March.
But, the amount of money given to private businesses went down by N777.13 billion, or 1.03%, to N74.73 trillion in August, compared to N75.51 trillion in July.
Economic experts are worried about the government borrowing money for a long time, because it could cause more inflation and make the economy weaker.
An economic expert said, “The government keeps borrowing more, showing that it depends more on the Central Bank of Nigeria to pay for important projects, debt, and other expenses.”
