Banks’ loans to private sector up by N3.50 trillion in one year – CBN

Adebayo Obajemu

According to the Central Bank of Nigeria, the value of loans given to the private sector by Nigerian banks rose by N3.5 trillion –from N16.251 trillion in June 2019 to N18.632 trillion as at the end of May 2020. This growth represents an increase of 21.53%.

According to the data, as at the end of June 2019, a total of  N15.13 trillion was released to the private sector. The figure rose to N15.61 trillion by the end of July 2019 before dropping to N15.56 trillion at the end of August 2019.

Out of the total N18.63 trillion credit to the private sector in May 2020, the Oil and Gas industry (downstream, natural gas and crude oil refining) pulled N3.60 trillion.

Closely following this, was the Manufacturing sector which attracted N1.99 trillion within the same period.

The General Services segment also attracted N1.60 trillion in May 2020.

The Finance, Insurance and Capital market segment followed with a N1.32 trillion credit.

The Oil and Gas sector (upstream oil and gas services) attracted N1.29 trillion in May 2020.

Trade and General Commerce attracted N1.25 trillion.

During the year, credit to the private sector hit the highest in May 2020 at N18.53 trillion.

On the other hand, credit to the government rose to the highest at N1.55 trillion in January 2020.

A closer look shows that credit to government was at its lowest at N1,21 trillion by August 2019.

Recall that in the apex bank’s Monetary Policy Committee (MPC) meeting communique,which included the personal statements of members of the apex bank’s MPC, Kingsley Obiora, Deputy Governor, CBN, stated that the credits were driven especially by demands from the manufacturing sector, consumer credit, general commerce, information and communication, and agriculture, among others. He said:

“Under the circumstances, the financial system has maintained a sound and stable position, following effective interventions by the CBN