FSDH Merchant Bank Ltd, Inflation rate, private sector loans, NBS

Nigerian Bank’s total lending to the private sector from Q1 2018 to Q3 2018 stood at N15.5 trillion as at September 30 2018. This was disclosed in a report by the National Bureau of Statistics (NBS) on selected Banking Sector Data.

Perhaps as a reflection of the fragile macroeconomic conditions, on a quarter on quarter basis, growth was negative for the first two quarters of 2018. Q1 credit stood at N15.6 trillion, then dropped to N15.3 trillion in the second quarter of 2018, before rebounding slightly to N15.5 trillion in the third quarter of 2018.

Non Performing Loans are on the rise 

Non-performing loans are also on the rise. Non-performing loans as a percentage of total loans stood at 13.83% in the first quarter of 2018, dipped to 12.45% in the second quarter, then increased to 14.16% in 2018. In Naira terms, non-performing loans stood at N2.2 trillion as at the third quarter of 2018, higher than the N1.9 trillion recorded in the preceding quarter, and the N2.1 trillion recorded in the first quarter of 2018.

What sector got the most funding?  

The oil and gas sector got a lion percentage of credit for the first three quarters. Credit to the oil and gas space (both as an industry and a subset of the services sector) stood at 21.92% of total credit granted in the first quarter of 2018, 22.52% of total credit granted in the second quarter of 2018 and 23% of credit granted in the third quarter of 2018.

Big borrowers crowd out others 

An analysis of total borrowings shows 3,891 borrowers of the country’s 2.3 million borrowers accounted for N13.1 billion or 82% of the N15.9 billion in loans granted in 2017. This is a trend consistent in the last two prior year where 2,247 borrowers accounted for 80.8% of the N16.2 billion lent in 2016, and 2,048 accounted for 69% of the N13.3 trillion lent in 2015.

Staffing rose slightly 

On a quarterly basis, staffing has also increased. The number of banking staff rose from 89,608 in the first quarter of 2018, to 101,861 in the second quarter and stood at 102,821 in the third quarter.

Commercial bank staff accounted for the lion share with 101,515, followed by non-interest banks with 790 staff and microfinance banks with 516 staff.

Onome Ohwovoriole has a degree in Economics and Statistics from the University of Benin and prior to joining Nairametrics in December 2016 as Lead Analyst had stints in Publishing, Automobile Services, Entertainment and Leadership Training. He covers companies in the Nigerian corporate space, especially those listed on the Nigerian Stock Exchange (NSE). He also has a keen interest in new frontiers like Cryptocurrencies and Fintech. In his spare time, he loves to read books on finance, fiction as well as keep up with happenings in the world of international diplomacy. You can contact him via onome.ohwovoriole@nairametrics.com


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