Nigerian banks’ assets and liabilities hit N36.2 trillion

The Central Bank of Nigeria in its Q3 2018 Economic Report reveal the total liability and assets base of commercial banks in the country.

According to the report, the total assets and liabilities of commercial banks stood at N36.26 trillion as at the  end of August 2018, representing 0.8 per cent increase over the level as at the end of June 2018.

According to the Apex Bank, the funds were sourced largely from mobilisation of unclassified and foreign liabilities, and realisation of claims on Central Bank. The funds were used, mainly, for payment of matured demand deposits, accretion to reserves and extension of credit to the private sector.

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Also at N19.30 trillion, banks’ credit to the domestic economy, at end of August 2018 showed an increase of 1.0 percent above the level as at end of June 2018. This is reflective of the rise in claims on both the Federal Government and the private sector in the review period.

Total specified liquid assets of the banks was N11.26 trillion at the end of August 2018, representing 54.5 percent of the total current liabilities. At that level, the liquidity ratio was 2.0 percentage points and 24.5 percentage points above the levels as at the end of June 2018 and the stipulated minimum ratio of 30.0 percent, respectively.

The loans-to-deposit ratio, at 65.89 percent, was 1.29 percentage points higher than the level at end of June 2018 but was 14.11 percentage points below the prescribed maximum of 80.0 percent.

Federally Collected Revenue within the period

At N2.52 trillion, Federally-collected revenue in the third quarter of 2018, was lower than the proportionate quarterly budget estimate of N3.32 trillion by 24.0 per cent. It, however, rose above the receipts in the preceding quarter by 8.9 per cent.

The decline in Federally-collected revenue (gross) relative to the proportionate quarterly budget estimate was attributed to the shortfall in both oil and non-oil revenue components in the review period.

Gross oil receipt, at N1.39 trillion or 55.2 percent of the total revenue, was below the proportionate quarterly budget estimate by 27.4 per cent. It also fell marginally below the receipts in the second quarter of 2018 by 0.3 per cent.

Despite the increase in crude oil price, oil revenue declined relative to the proportionate budget owing to shortfalls in crude oil production and exports, arising from leakages and shut-ins/shut-downs at some NNPC terminals.