The National Bureau of Statistics (NBS) disclosed that banks’ credit to private sector rose by 4 percent Year-on-Year (YonY) to N17.19 trillion in 2019 from N15.13 trillion in 2018.
Just as the Non Performing loans (NPL) in the banking sector fell by 41 percent, YoY to N1.05 trillion in 2019 from N1.79 trillion in 2018.
The figures were contained in the release of Selected Banking Sector Data for the fourth quarter 2019 by the Bureau yesterday.
Further analysis of the NBS data showed that credit availed to the Oil and Gas sector dropped by 4 percent, YoY, to N3.42 trillion in 2019 from N3.55 trillion in 2018 while credit to manufacturing sector rose by 18 percent, YoY to N2.62 trillion in 2019 from N2.23 trillion in 2018.
According to NBS: ”In terms of credit to private sector, the total value of credit allocated by the bank stood at N17.19 trillion as at Q4’19. Oil & Gas and Manufacturing sectors got credit allocation of N3.42 trillion and N2.62 trillion respectively, to record the highest credit allocation as at the period under review.”
The NBS report also revealed that credit availed to Agricultural sector rose the most at 27 percent YonY from N610.15 billion in 2018 to N772.38 billion in 2019. While loans availed to the Mining sector from the most at 45 percent from N20.61 billion in 2018 to N11.31 billion in 2019.
The Construction, Trade and General Commerce and Government Agencies sectors also had growth in Credit availment of 18 percent, 16 percent and 12 percent YonY in 2019 respectively.
While Power and Energy and Real Estate had drops of 7 percent and 3 percent in bank credit availment in 2019 YonY respectively.
In the Services sectors: Information & Communication had the highest growth in 2019 YonY credit with 62 percent growth, while Power and Energy had the only drop in Service Sector credit with a drop of 4 percent YonY.