7.8m banks’ customers borrowed N45.6trln in 3 years

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The Nigerian Deposit Money Banks (DMBs) totalling 7.8 million borrowed the sum of N45.6 trillion in three years.

A breakdown of the latest report of the National Bureau of Statistics (NBS) revealed that 3.03 million customers borrowed N13.4 trillion in 2015, 2.5 million borrowed N16.3 trillion in 2016 while 2.3 million customers borrowed a total of N15.9 trillion from banks in 2017.

Further breakdown of the NBS report shows that 8,186 customers of the banks borrowed above N1 billion, which amounted to N35.7 trillion in three years.

The report shows that in 2015, 2.9 million bank customers borrowed up to N1.0 million totalling N252 billion, 2.3 million borrowed N226 billion in 2016 while 2.2 million customers also borrowed the same amount, which stood at N122 billion in 2017.

During the period under review, a total of 12,356 customers borrowed above N50 million to N100 million, which amounted to N854.94 billion in three years.

In terms of credit to private sector, the total value of credit allocated by the banks stood at N15.21trillion as at first quarter (Q1) of 2019. This represents 0.52 percent compared with N15.13 trillion in the fourth quarter (Q4) of 2018.

The selected banking sector data for Q1 2019 by the NBS show that Oil and Gas and manufacturing sectors got credit allocation of N3.49 trillion and N2.23 trillion to record the highest credit allocation as at the period under review.

“The issue of enhancing credits to the private sector businesses is critical to our recovery process and effective collaboration of all stakeholders is, therefore, needed in this direction”, Godwin Emefiele, governor of the Central Bank of Nigeria (CBN) said in his personal statement in March Monetary Policy Committee (MPC) meeting.

According to him, both the broad and narrow money aggregates, M2 Read More...