Data from the Central Bank of Nigeria (CBN) has shown that construction firms borrowed the sum of N132 billion between January 2022 and October 2022.
This means that loans obtained from banks by operators in the nation’s construction sector have increased from N1.025 trillion in January 2022 to N1.157 trillion in October 2022.
This is according to the Central Bank of Nigeria Sectoral Analysis of Deposit Money Banks’ Credit.
In January this year, the Governor of the CBN, Godwin Emefiele, said that the banking sector would increase access to finance and credit for households and businesses in 2022.
“The policy focus of the bank for 2022 is with a pledge to sustain improved access to finance and credit for households and businesses, mobilise investment to boost domestic productivity, enable faster growth of non-oil exports, and support employment generating activities,” he said.
However, stakeholders have maintained that the current double-digit lending rate is unfavourable as it directly impacts the cost of production and the competitiveness of the sector.
Reacting, the Public Relations Officer, Nigerian Institute of Builders, Lagos Chapter, George Chukwurah, stated that the quest to defeat idleness had made more companies run to banks for more loans despite the economic downturn witnessed in the country.
"Business is risk-taking so I believe many business owners don’t want to stay idle, which is why they are still borrowing.
"This (borrowing) doesn’t mean the sector is doing well. I can tell you things are tight in this sector.”