Business
Banker Tasks FG On Use of N350bn Fund
A former President of the Chartered Institute of Bankers of Nigeria (CIBN), Mr Okechukwu Unegbu, on Monday urged the Federal Government to specify strategic areas that the proposed N350 billion stimulation fund would be injected into.
Unegbu told newsmen in Lagos there must be proper planning before the injection of such funds in the economy, to avoid excess liquidity.
He said that there must be proper clarity and planning where the funds would be channelled into, for economy growth and development.
Unegbu said that government should work closely with the Central Bank of Nigeria (CBN), to streamline fiscal and monetary policies.
He explained that there must not be any disconnection between the apex bank and government in policy management.
Unegbu, however, expressed concern at the disparity between the CBN’s Monetary Policy Committee (MPC) and the Federal Government in the management of the economy.
He stated that the major reason for increasing interest rate to 12 per cent from 11 per cent was to reduce excess liquidity.
According to him, government should work closely with the CBN to avoid a policy somersault.
The Federal Government recently announced its readiness to inject a total of N350 billion into the economy in the next few months.
Minister of Finance, Mrs Kemi Adeosun, said that part of the money would help to offset the debt owed to local contractors, who had laid-off their workers due to lack of funds.
Credit to Nigeria’s private sector rose to N83.26 trillion in June 2026 from N81.04 trillion in May, signifying a positive balance of N2.22 trillion month-on-month.
Year-on-year, the figure represents a nine per cent increase compared with the N76.13 trillion recorded in June 2025. The latest figures come as the CBN continues to balance efforts to control inflation with the need to support economic growth and expand credit to businesses.
The CBN data shows that credit to Nigeria’s private sector increased by approximately 2.74 per cent month-on-month between May and June 2026. Also, the CBN data noted that credit to the government fell slightly to N40.03 trillion from N40.38 trillion. Other assets, net, dropped to N10.76 trillion from N12.63 trillion.
The credit surge signifies sustained growth in lending to businesses and other private-sector borrowers during the month. The rise in private sector credit was recorded alongside an increase in net domestic credit, despite declines in credit to government and other assets.
Further analysis of the report says that compared with June 2025, private sector credit rose by about N7.13 trillion yea-on-year but net domestic credit increased by approximately N1.87 trillion during the month.
The CBN’s relatively tight monetary policy stance notwithstanding, more banks still loaded funds to the private sector within the period. The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) held its 306th meeting on July 20 and 21.
The Committee reviewed recent developments in the global and domestic economies, assessed emerging risks to the outlook and considered their implications for monetary policy and retained all rates.
The Committee decided to retain the Monetary Policy Rate at 26.5 per cent; the Standing Facilities Corridor around the MPR at +50/-450 basis points and retain the Cash Reserve Requirement (CRR) for Deposit Money Banks at 45.00 per cent, Merchant Banks at 16.00 per cent, and non-TSA public sector deposits at 75.00 per cent.
The MPC decision means that credit extension in the private sector will likely continue to rise because of rising confidence in the sector and calls by stakeholders for banks to invest in the private scetor instead of government securities.
