
Nigeria Banks’ Distress Borrowing From CBN Hits N12trn In 8 Months
Nigerian banks’ borrowing from the Central Bank of Nigeria rose to N12 trillion in eight months, an indication that most of the banks are in distress situation and living on the goodwill of the apex bank.
The spate of intense borrowing by merchant and commercial banks from the Central Bank of Nigeria (CBN) has indicated an increasing reliance on the apex bank for liquidity.
According to data from the CBN commercial and merchant banks borrowed a total of N12.46 trillion from the apex bank between January and August this year.
The amount indicates a Year-on-Year increase of 79 percent when compared with the N6.96 trillion recorded in the first eight months of 2022. This increased borrowing appetite which dominated the first months of the year was traced to the CBN’s new Naira note p...