Nigerian banks lending to the private sector declined by N600.60 billion over the past six quarters, dropping from the N16 trillion recorded in the first quarter of 2017 to N15.34 trillion, in the second quarter of this year.
This data was contained in the National Bureau of Statistics’ (NBS) latest report on Selected Banking Sector Data: Sectorial Breakdown of Credit, ePayment Channels and Staff Strength (Q2 2018).
According to the data, out of the total N63.27 trillion credit provided in 2017 by banks to support private sector operations, N16 trillion was provided in the first quarter while N15.7 trillion, N15.83 trillion and N15.74 trillion respectively were lent to the OPS in the second, third and fourth quarters of the year.
In the first and second quarters of the current year, the banks provided N15.6 trillion to the private sector in Q1 2018 compared to the N15.34 trillion in the second quarter.
The Bureau reported further that credit allocation to the Oil & Gas sector increased to N3.45 trillion in Q2 from N3.42 trillion in the first quarter of this year, while credit to the manufacturing sector decreased to N2.02 trillion from N2.07 trillion in the first quarter.
Similarly, the agency stated that the money provided as credit to the agriculture sector increased to N523.08 billion from N501.6 billion recorded in Q1, 2018 while Power and Energy dropped to N416.34 billion from N426.5 billion in the first quarter. Mining and Quarry sectoral credit also declined to N10.18 billion from N10. 461 billion in Q1, 2018
The NBS reported further that while credit to Government increased to N1.47 trillion in Q2,2018 from N1.41 trillion in the preceding quarter, Trade/General Commerce decreased from N1.054 trillion in Q1 to N1.044 trillion in Q2, 2018 just as Finance, Insurance and Capital Market credit also dropped to N991.22 billion in the quarter under review from the N999.491 billion advanced to the sector as credit in the preceding quarter.
Also, the official statistics producing and reporting agency stated that Real Estate credit declined to N744.56 billion in Q2 from the N784.23 billion recorded in Q1, while Information Communication and Technology got N814.57 billion and Construction had N612.85 billion, as credits during the quarter in review.
The Education sector received N71.8 billion, while Transportation and Storage and other Sectors received N304.4 billion and N361.7 billion, respectively.