Bank’s credit to private sector drops by N140bn
The National Bureau of Statistics, NBS, reports that banks’ credit to the private sector fell by N140billion in the first quarter of 2018, dropping to N15.6trillion in the period.
The Bureau, in its latest banking sector report titled “Sectorial Breakdown of Credit, e-payment Channels, and Staff Strength Q1’18 Report” reveals that the credit provided by banks reduced from N15.74trillion in the fourth quarter of 2017, to N15.6trillion in the first quarter of 2018.
An analysis of the report shows that the mining & quarrying sector, power & energy sector and transportation & storage sector suffered the highest decline in credit in the first quarter compared to the previous quarter.
However, the Oil and Gas and Manufacturing sectors got credit allocation of N3.42 trillion and N2.07 trillion to record the highest credit allocation within the period under review.
The information & communication sector, general sector, and ‘other’ sectors also enjoyed the high increase in credit allocation between January and March 2018.
The mining & quarry sector suffered the highest decline as credit to the sector fell by 58percent to N10.5billion in first quarter from N25.2billion in Q4’17. This was followed by credit to power & energy sector, which fell by 28percent to N426.5billion in Q1’18 from N453.9billion in Q4’17.
Credit to the transportation and storage sector (services) also fell by 12.2percent to N291.7 billion in Q1’18 from N332.09billion in Q4’17. On the other hand, credit to the information sector rose by 11.7percent to N865.3 billion in Q1’18 from N774.4 billion in Q4’17.
Credit to the general sector also increased by 10.6percent to N1.15trillion from N1.04trillion in Q4’17. Similarly, credit to ‘other’ sectors rose by 8.5percent to N384.9 billion in Q1’18 from the N354.8billion provided in Q4’17.
Meanwhile, Automated Teller Machines, ATM, transactions from selected Banks across the country, recorded transactions valued at N1.568 billion in first quarter.
The NBS reports that a total of 457,226,406 transactions valued at N32.48trillion were recorded in the first quarter on Electronic Payment Channels in the Nigeria Banking Sector.
It, however, stated that ATM transactions dominated the volume of businesses recorded by the banking sector which was 212,370,853 transactions.
The report also shows that the number of banks staff decreased by -0.93 percent from 90,453 in the fourth quarter of 2017 to 89,608 in the review period.