Alliance Report Laments N14tn Credit Contraction to Productive Sector Despite Banks’ Stronger Capital Base

Declares SMEs face N48tn funding gap amid credit squeeze as current lending represents 1% of total bank loans

Adds Nigeria cannot borrow its way to prosperity

James Emejo in Abuja

A report by the Alliance for Economic Research and Ethics (AERE), has bemoaned the country’s recent ₦14 trillion decline in private sector lending, adding that the situation should be treated as an economic emergency rather than a routine financial adjustment.

The report noted that the sharp decline in credit exposes deep structural weaknesses in the financial system, despite improvements in banking sector liquidity amid ongoing recapitalisation exercise and reforms by the Central Bank of Nigeria (CBN).