Banks credits to private sector hit N15.1trn, NPL settles at 9.3%
The Nigerian Bureau of Statistics recent data released on Sunday has revealed that aggregate credits to private sector from deposit money banks declined by 2.65% in the second quarter of 2019 to N15.132 trillion.
However, it was observed that of the total credit disbursed, Oil and gas sector accounted for highest chunk of the disbursement at 22% followed by Agricultural sector 15.32%.
Oil & Gas and Manufacturing sectors got credit allocation of N3.33 trillion and N2.32 trillion to record the highest credit allocation as at the period under review.
The Bureau revealed that total volume of 711,299,990 transactions valued at N40.48 trillion were recorded in the second quarter of 2019 as data on Electronic Payment Channels in the Nigeria Banking Sector revealed.
NIBSS Instant Payments (NIP) transactions dominated the volume of transactions recorded. 271,344,549 volumes of NIP transactions valued at N25.18 trillion were recorded in the second
According to NBS, total number of banks’ staff as at the second quarter of 2019, decreased by 0.62 per cent quarter-on-quarter from 105,017 in quarter one to 104,364.
At the end of second quarter of 2019, gross loans dropped to N15.483 trillion from N15.544 trillion in the first quarter.
However, specific provision made by banks also nosedived accordingly, from N1.741 trillion to N1.537 trillion.
Non-performing loans to total loans which hit 10.79% in the first quarter of 2019 declined to 9.3% in the second quarter.
In absolute term, the banking sector total non-performing loans closed the second quarter of 2019 at N1.44 trillion from N1.676 trillion in the first quarter.
This is about twice the rate set by the Central Bank of Nigeria, with NPL benchmark target of 5%.
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Banks credits to private sector hit N15.1trn, NPL settles at 9.3%
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