Real estate firms borrow N2.26tn in eight months – CBN


Real estate and construction firms in the country were able to secure loans totalling N2.26tn in eight months, findings by The PUNCH have shown.

The amount borrowed from banks was used as capital to broaden services in the sector.

The loans obtained between November 2022 and June 2023, increased from N1.90tn to N2.26tn representing a growth of 18.9 per cent.

This new figure is despite the decision by the apex bank to increase the benchmark interest rate from 11.5 per cent earlier last year, to 18.75 per cent in June this year, across eight consecutive rate hikes as part of strategies to reduce inflation and mop up liquidity from circulation.

According to the Sectoral Analysis of Deposit Money Banks’ Credit by the Central Bank of Nigeria, the real estate sector secured a loan of N755bn, while the construction industry obtained even more impressive credit facilities worth N1.51tn.

Data from the CBN revealed that borrowing by real estate firms rose from N712bn to N755bn, representing an increase of 44.4 per cent while loans by construction firms N1.19tn to N1.51tn within the same period.

A monthly breakdown showed that N1.80tn was borrowed in December, N1.78tn in January, N1.82tn in February, N1.84tn in March, N1.88tn in April and N1.84tn in May.

The increase in benchmark interest rate had been taking its toll on the country’s economy, worsening its housing crisis. It had also made investors take a watch-and-see approach as the prices of buildings continue to skyrocket.

Source: The Punch


Please enter your comment!
Please enter your name here

Share post:



Latest Updates

More like this

CBN issues new guidelines for bureau de change operations

The Central Bank of Nigeria (CBN) has released new...

Naira gains N28.34 against dollar at official market

The Naira on Monday gained N28.34 at the official...

CBN withdraws cybersecurity levy

Nigerians can now heave a sigh of relief as...

Usyk beats Fury to become undisputed world heavyweight boxing champion

Oleksandr Usyk beat Tyson Fury by split decision to win the world's first undisputed heavyweight championship in 25 years on Sunday, an unprecedented feat in boxing's four-belt era. The judges scored the fight 115-112 for Usyk, 114-113 for Fury, leaving the final card to decide, which read 114-113 for Usyk. It meant Fury, 35, lost […]

The post Usyk beats Fury to become undisputed world heavyweight boxing champion appeared first on The Guardian Nigeria News - Nigeria and World News.

Bitcoin (BTC) $ 68,643.39 2.27%
Ethereum (ETH) $ 3,750.29 1.99%
Tether (USDT) $ 1.00 0.08%
BNB (BNB) $ 600.84 1.78%
Solana (SOL) $ 168.57 1.23%
Lido Staked Ether (STETH) $ 3,747.96 1.83%
USDC (USDC) $ 1.00 0.08%
XRP (XRP) $ 0.534737 2.94%
Dogecoin (DOGE) $ 0.164229 3.50%
Toncoin (TON) $ 6.31 3.04%