According to the CBN, the total value of currency-in-circulation dropped to N1.668 trillion as at the end of March from N1.937 trillion in February.
The data also showed that credit to private sector reduced year-on-year from N22.621 trillion in February to N22.444 trillion recorded at the end of March.
The CBN data showed that broad money (M2), slightly increased from N24.019 trillion in February to N24.303 trillion at the end of March. Similarly, narrow money (M1), rose to N10.913 trillion in March from N10.731 trillion in February.
Analysts at FSDH Merchant Bank Limited had projected a rise in banking sector credit to the private sector for the year. The firm also expected the manufacturing sector to attract the higher credit and said that uncertainties around fuel subsidy may lead to less credit for the sector. On the agriculture sector, it said that it is unable to attract the required credit because of problems plaguing the sector such as inadequate storage, poor infrastructure and road networks, poor research and development.
The CBN governor, Mr Godwin Emefiele had assured Nigerians that the bank will put measures in place to guarantee a stable exchange rate regime and that he is optimistic that improved outcomes would be recorded in taming inflation and reducing interest rates.
Photo Credit: The Guardian Nigeria
