The Oil and gas and the Manufacturing sectors including borrowings of government agencies and parastatals at the federal, state and local government levels are responsible for 53% of banking sector credits as at June 2019. Figures from the National Bureau of Statistics (NBS) has revealed.
The Selected Banking Data 2019 Q2 data recently released by the NBS shows that of the total N15.1 trillion banking sector credits, Oil and gas sector had the largest chunk of N4.4 trillion representing 29%. Being the highest of 14 sectors of the Nigerian economy in the list
The Manufacturing, Trade & Commerce and Government agencies and parastatals followed the Oils and gas sector in that order with N3.3 trillion, N2.0 trillion and N1.3 trillion respectively representing 15.3%, 13.3% and 8.8% of the total credit respectively.
Mining & Quarrying, Education and Transport & Storage had the least of the bank credit exposure in Q2 2019 with N8.7 billion, N60.4 billion and N317.1 billion representing 0.06%, 0.40% and 2.10% respectively for the 3 least sectors.
The data as released by NBS also revealed that total credit to the economy dropped Q on Q by 2.65% from N15.5 trillion to N15.1 trillion. And only 6 of the 14 sectors grew in terms of bank credit availed to them by banks in Nigeria.
The 6 sectors are namely: Information & Communication, Construction, Transport & Storage, Manufacturing, Finance, Insurance & Capital Market and General had Q on Q growth of 16.8%, 6.9%, 6.3%, 3.9%, 0.7% and 0.7% respectively.
The other 8 sectors have negative growth in banking sector credits with Education and Other sectors having the largest negative growth Q on Q of 27.1% and 45.4% respectively.
Of the 4 Industrial sectors namely Mining & Quarrying, Manufacturing, Oil & Gas and Power & Energy, only manufacturing credit grew from N2.23 trillion to N3.32 trillion being a growth of 3.89% Q on Q. Power & Energy had the most drop in credit from N393 billion in Q1 2019 to N335 billion in Q2 representing 14.7%.
Of the 9 services sectors namely Real Estate; Financial, Insurance & Capital Market; Education; Oil & Gas; Power & Energy; Information & Communication; Transport & Storage; General and Others. Only Information & Communication; Transport & Storage; General and Financial, Insurance & Capital Market had growth in credit in Q2 2019 with 16.8%, 6.3%, 8.9% and 0.7% growth respectively.
Others, have negative growth with 45.4% and 27.1% attributed to Other sectors and Education sector respectively being the highest Q2 negative banking sector credits growth for the service sectors.