x

**Real Estate and Construction Firms Secure N2.26tn in Loans in Eight Months, CBN Reports**

By Daniel Edu

Real estate and construction companies in Nigeria have managed to secure loans totaling N2.26 trillion over an eight-month period, according to data obtained by The PUNCH.

These loans, sourced from various banks, were utilized as capital to expand operations in the real estate and construction sectors. The lending trend spanned from November 2022 to June 2023, revealing significant growth, increasing from N1.90 trillion to N2.26 trillion, marking an 18.9% increase.

Remarkably, this upward trajectory occurred in spite of the Central Bank of Nigeria’s decision to raise the benchmark interest rate. The interest rate surged from 11.5% early in the previous year to 18.75% by June of the current year. This hike was part of a series of eight consecutive rate increases aimed at reducing inflation and withdrawing excess liquidity from circulation.

The Central Bank’s Sectoral Analysis of Deposit Money Banks’ Credit showed that the real estate sector secured loans amounting to N755 billion, while the construction industry managed even more substantial credit facilities valued at N1.51 trillion.

Specifically, data from the CBN revealed that borrowing by real estate companies surged from N712 billion to N755 billion, representing an impressive 44.4% increase. Concurrently, loans provided to construction firms increased from N1.19 trillion to N1.51 trillion during the same period.

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

The steady rise in the benchmark interest rate has posed challenges to the Nigerian economy, exacerbating the housing crisis and causing property prices to soar. Investors have adopted a cautious “watch-and-see” approach as a result.

Hot this week

Editors Urge Government To Create Safe, Enabling Environment For Journalists

· Ask security agents to find missing Vanguard journalistAs...

EXCLUSIVE: Buhari orders probe of Isa Funtua, AMCON over keystone and Etisalat

Following the controversy generated by the leading opposition party,...

6 Signs your boyfriend thinks you are ugly -Take note of No. 2

They say there are three kinds of people; the...

2023: South-East, Middle Belt Forum Endorses Peter Obi

The South-East and Middle Belt Forum has endorsed the...

A’Ibom Lawmaker wants Naval Base in Oku Iboku as C/River assailants kill two

By Ogenyi Ogenyi,UyoIn the wake of renewed violence and...

Police Arrest 239 Suspects, Recover Weapons in Kogi

By Noah Ocheni, LokojaNo fewer than  239 criminal suspects...

Tinubu’s Aide Launches JusticeTechNG 2025 to Spur Legal Sector Innovation

President Bola Tinubu’s Special Assistant on Justice Sector Reform...

Davido: Critics Target Me Because of My Wealthy Background

Afrobeats superstar David Adeleke, popularly known as Davido, has...

ASUU Threatens Legal Action Against JAMB Over 2025 UTME Mass Failure

The Academic Staff Union of Universities (ASUU), University of...

Lagos Plans Monthly Rent Payment System to Ease Financial Burden

The Lagos State Government has announced plans to introduce...

BREAKING: JAMB Admits to Errors in 2025 UTME Affecting Student Performance

The Joint Admissions and Matriculation Board (JAMB) has officially...

Tinubu, Ganduje Strategize Apc’s Bright Future Ahead of 2027

By: Dr Sagir S Buhari FCIAAs Sun Tzu once...
spot_img

Related Articles

Popular Categories

spot_imgspot_img