Banks’ loans to private sector, government dangle at N24.97trn

Total credit facilities released by Nigerian banks to both government and private sector players in Nigeria stood is estimated at N24.97 trillion as of September, 2021.

This is according to the Central Bank of Nigeria report titled, ‘Deposit Money Bank’s sectoral allocation of credit.’

Of the total amount, the private sectors is responsible for the larger chunk of N22.8 trillion, representing 91.31 per cent of the total debt to Nigerian banks.

On the other hand, government borrowing from banks stood at N2.17 trillion in September after growing by N400 billion or 22.59 per cent in a nine-month period spanning January to September 2021 from 1.77 trillion as at December, 2020.

According to the figures, bank loans to the government rose from N1.88 trillion as of the end of March 2021 to N2.03 trillion in June 2021, and N2.12 trillion in August 2021.

The data also showed the amounts of bank loans to other sectors such as industries, agriculture, mining and quarrying, manufacturing, oil and gas, power and energy. Others sectors include construction, trade and general commerce.

The CBN figures also revealed bank loans to real estate sector, finance, insurance and capital market.

Others sectors include education, oil and gas, power and energy, information and communication, transportation and storage and other general businesses.

The Governor, Central Bank of Nigeria, Godwin Emefiele, had said the banking sector would increase access to finance and credit for households 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.

He noted that the country had been able to contain some of the effects of the COVID-19 pandemic on the economy.

He stressed the need for all stakeholders to join the apex bank to build a more resilient economy to better contain external shocks, support growth and enhance wealth creation in key sectors of the economy.

Emefiele said a major lesson from the COVID-19 pandemic was that deliberate efforts must be made to diversify the economy base.

Emefiele said the country must do everything possible to reduce the importation of goods into the country.