Credit to the government rose month-on-month, MoM, by 7.6 per cent to N36.16 trillion in January 2024 from N33.6 trillion in December 2023.

Data contained in the Central Bank of Nigeria, CBN, Money and Credit Statistics for the review period also showed that credit to the private sector grew MoM by 23 percent to N76.9 trillion in January 2024 from N62.5 trillion in December 2023.

Consequently, the net domestic credit (NDC) to the economy rose to N113.1 trillion in January 2024, representing a 17.5 percent MoM growth from N96.18 trillion in December 2023.

Last month, the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, revealed that the country may tap the Eurobond market later in the year if rates move sufficiently lower.

In their macroeconomic update, analysts at CardinalStone Research noted that such a move would improve foreign exchange liquidity.

“We see legroom for gradual improvement in FX liquidity, aided by the plans of the government to obtain credit in the Eurobond market.

“Given Nigeria’s supportive credit ratings and the expectations of likely rate cuts in the United States, US and other developed markets, we expect the planned issuance to be successful,” CardinalStone stated.