Banks credit to economy dropped by n136bn in q1 nbs
According to the National Bureau of Statistics (NBS), the credit to the economy by banks in Nigeria dropped by N136 billion in the first quarter (Q1) of 2022.
Here are some key points from the report:
- Credit to the economy: The total value of credit extended to the economy by banks in Q1 2022 was N24.13 trillion, which represents a decline of N136 billion or 0.56% compared to the N24.27 trillion recorded in Q4 2021.
- Sectoral breakdown: The breakdown of credit to the economy by sector shows that the manufacturing sector received the largest share of credit, accounting for 14.1% of the total credit extended. The agricultural sector received 10.3%, while the construction sector received 8.5%.
- Growth rate: The growth rate of credit to the economy in Q1 2022 was 4.3%, which is lower than the 5.1% recorded in Q4 2021.
- Credit to the private sector: The credit to the private sector, which accounts for the majority of the credit extended, decreased by N144 billion or 0.61% to N22.43 trillion in Q1 2022 compared to N22.57 trillion in Q4 2021.
- Credit to the government: The credit to the government, which includes loans to the federal and state governments, increased by N8 billion or 1.1% to N1.70 trillion in Q1 2022 compared to N1.69 trillion in Q4 2021.
The decline in credit to the economy may be attributed to various factors, including the impact of the COVID-19 pandemic, economic uncertainty, and regulatory requirements. However, the NBS report also highlights the resilience of the banking sector, which continues to play a crucial role in the economy.