As a geographical entity, Lagos State has again proven correct it given appellation as the economic hub of the country even when it comes to access to credit by Nigerians and corporate entities.
According to the National Bureau of Statistics (NBS) in its Nigerian Selected Banking sector data as at Q2 2020 just released, Lagos led other states on the chart of geographical distribution of credit by states.
The report revealed that total Geographical Distribution of Credit by State stood at N18.90 trillion compared to N18.56 trillion in Q1 2020 and N15.44 trillion in Q2 2019.
This represents 1.82 per cent increase in credit Quarter on Quarter (QoQ) and 22.38 per cent Year on Year (YoY).
Lagos State recorded the highest credit by geographical distribution with N14.92 trillion accounting for 78.94 per cent while Yobe State recorded the least with N13.8 billion accounting for 0.07 per cent in Q2 2020.
The BNBS however cautioned 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 stated.
Meanwhile, the report revealed that the total value of loans distributed under the Agricultural Credit Guarantee Scheme Fund (ACGSF) stood at N4.07 million in 2019 compared to N4.37 million distributed in 2018. This represents a decrease of -7.03 per cent YoY.
The report further shows that remittance inflows declined by -2.06 per cent 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 recorded in 2018.
Further breakdown of borrowers in the banking industry showed that the total number of borrowers increased by 47.35 per cent to 2.59 million in 2019 from 1.76 million recorded in 2018 while number of credit facilities increased by 55.54 per cent to 3.18 million in 2019 from 2.04 million recorded in 2018.
Meanwhile, 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 the same year.