Banking Sector Credit Rises To N18.90tn Nationwide
• Lagos accounts for 78.94%, borrowers jump to 2.59m from 1.76m.
The total banking industry credit to customers in the 36 states of the federation and Federal Capital Territory (FCT) rose to N18.90 trillion in the second quarter of the year (Q2 2020), compared to N18.56 trillion in the preceding quarter and N15.44 trillion in Q2 2019, the National Bureau of Statistics (NBS) stated yesterday.
According to the Selected Banking Sector Report: Quarterly Geographical Distribution of Credit by State Q1 2015 to Q2 2020, released by the statistical agency, Lagos State recorded the highest credit by geographical distribution with N14.92 trillion or 78.94 per cent of total credit, while Yobe State recorded the least credit facility with N13.8 billion, accounting for 0.07 per cent in Q2 2020. The FCT accounted for N564.10 billion of industry credit within the review period, while Abia accessed N97.15 billion, as well as N92.85 billion.
The NBS, however, pointed out that credit per state may not necessarily reflect the level of economic activity in the state. “For example, all the oil majors are operating outside Lagos but their credit is booked in Lagos. Similarly, Dangote Cement’s loan may have been booked in Lagos but their major activity is outside Lagos,” the report noted.
The report stated that the total number of borrowers increased by 47.35 per cent to 2.59 million in 2019 from 1.76 million in 2018, while the number of credit facilities increased by 55.54 per cent to 3.18 million in 2019 from 2.04 million recorded in 2018. Remittance inflows contracted by 2.06 per cet in 2019 to $23.81 billion from $24.31 billion recorded in 2018, while total remittance outflows increased by 33.87 per cent to $90.6 million from $67.68 million in 2018.
Total number of individuals who registered for National Housing Fund in 2019 stood at 220,935, while total amount of money given out as mortgage loans stood at N77.61 billion in 2019. Further breakdown of borrowers in the banking industry showed that borrowers increased by 47.35 per cent to 2.59 million in 2019 from 1.76 million in 2018, while the number of credit facilities increased by 55.54 per cent to 3.18 million in 2019 from 2.04 million in 2018.
According to the NBS, the total value of loans distributed under the Agricultural Credit Guarantee Scheme Fund (ACGSF) stood at N4.07 million in 2019, compared with N4.37 million distributed in 2018, representing a decrease of -7.03 per cent year on year.