The Selected Banking Data Report by the National Bureau of Statistics shows that Nigeria’s oil and gas sector received the highest amount of credit facilities from banks in Nigeria in the second quarter of 2018. According to the report, the oil and gas sector received 22.52% of the total credit allocated by banks to the private sector in Nigeria.
The report which is published on the NBS website shows the sectoral breakdown of credit, epayment channels, and staff strength of banks in Nigeria.
Nigerian banks provided N15.34 trillion worth of credit facilities to the private sector within the second quarter of 2018, which is a growth of 1.69% quarter-on-quarter. This is actually a decline from N15.60 trillion received by the private sector in the first quarter of 2018.
Oil and gas sector received the sum of N3.45 trillion (22.52%), while the manufacturing sector followed with 13.16%, amounting to N2.02 trillion. This is an indication that these sectors topped other sectors as witnessed in Q1 2018. The two sectors received
Nigeria mining and quarrying industries, according to the report received the lowerest of 0.07% credit facilities, amounting to N10.17 billion within the same period. The power and energy sector also received a 2.71%, which amount to N416.34 billion.
The agricultural sector was allocated the sum of N523.07 billion, which is 3.41% of banks’ loan to the private sector in Q2 2018.
Government at all level got 9.61% of the total credit facilities from banks, amounting to N1.47 trillion. The report also shows that other services sector, which includes education; construction; trade and commerce; real estate; finance, insurance, and capital market; power and energy; Information and communication; and transportation and storage received 44.17% of the total credit facilities from banks in Q2 2018.
Third quarter might witness a surge in credit facilities to agricultural and manufacturing sectors with the introduction of special single interest credit facilities to these sectors. On how the loan will get to the sectors, the Central Bank of Nigeria (CBN) said the idea is for commercial banks to get refunds through their Cash Reserve Ratio (CRR) for engaging in a new project or an existing one in the agriculture or manufacturing sector as a way of utilising the CRR.
