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Business News

GTBank, Access, Zenith, UBA, FBN loans rise to N9.28 trillion in six months 

GTBank, Access Bank, Zenith Bank, United Bank of Africa and First Bank (FUGAZ) gave N9.34 trillion loans to their customers in H1 2019.

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FUGAZ Banks, loans, loan, Access, Zenith, GTBank, top actively traded stocks on Monday , FUGAZ lead actively traded stocks as bourse ups 1.7%, Nigeria’s top 5 banks spent more than N40 billion on adverts in 2019

GTBank, Access Bank, Zenith Bank, United Bank of Africa and First Bank (FUGAZ) have increased their loans and advances to N9.34 trillion in the first half of 2019 according to findings by Nairametrics.

Details: Access Bank 

Access Bank’s net loans and advances increased from N2.14 trillion as at the end of December 2018 to N2.85 trillion by June 2019, an increase of 33%.

Loan distribution by sector:

  • Oil and gas (Services, upstream, downstream, refinery) got 29.6% of the total loan
  • General commerce – 11.5%
  • Real Estate – 7.7%
  • Government – 7.5%
  • Finance & Insurance – 7.5%
  • Construction – 6.9%
  • General –  4.2%
  • Transportation – 3.3%
  • Manufacturing – 3.3%
  • Food manufacturing – 2.8%

Access, Scandal: Another blow on Nissan as CEO steps aside, loans, loan, bank  

[READ MORE: Lenders increase unsecured loans to households in Q3 2019 – CBN]

Zenith Bank

Zenith Bank’s loans and advances dropped from N1.82 trillion in December 2018 to N1.80 trillion by June 2019, a drop of 1.09%.  

Loan distribution by sector: 

  • Oil and Gas – N541.9 billion 
  • Manufacturing – N507.2 billion 
  • Government – N311.5 billion 
  • General commerce – N225.8 billion 
  • Agriculture – N104 billion 
  • Power – N92.7 billion 
  • Consumer credit – N45.9 billion 
  • Education – N4.3 billion
Zenith Bank GMD and CEO Mr. Ebenezer Onyeagwu, loans, loan

Zenith Bank GMD and CEO Mr. Ebenezer Onyeagwu

UBA Plc 

UBA Plc’s loans and advances increased from N1.73 trillion in 2018 full year to N1.77 trillion 2019 half year, by 2.2%.

Distribution by sector:

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  • Oil and Gas – 21%
  • Manufacturing – 18%
  • Government – 12%
  • Commerce – 11%
  • Power – 10%
  • Consumer – 9%
  • Others – 7%
  • Communication – 6%
  • Real Estate and Construction – 3%
  • Agriculture – 3%

UBA, bank, loans, loan

First Bank of Nigeria

The Nigerian oldest financial institution’s loan also dropped from N1.72 trillion to N1.59 trillion within the same period.

Distribution by sector:

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  • Oil and Gas (upstream, downstream, services) – 34.8%
  • Manufacturing – 14.4%
  • Government – 9.7%
  • Real Estate – 7.9%
  • Information and Communication – 6.7%
  • Construction – 6.3%
  • Consumer – 5.6%
  • Power & Energy – 4.1%
  • General Commerce – 4.0%

First Bank, loans, loan

GTBank 

Guaranty Trust Bank Plc increased its loan and advance by 0.79%, from N1.26 trillion to N1.27 trillion within same period.

Distribution by sector:

  • Oil and Gas (upstream, midstream, downstream) – 44%
  • Manufacturing – 19%
  • Individuals – 11%
  • Government – 5%
  • Info, Telcom & Transport – 4%
  • Capital market & financial institutions – 4%
  • General commerce – 4%
  • Others – 4%
  • Construction – 3%
  • Agriculture – 2%
  • Education – 1%

Meanwhile, Nairametrics reported that secured lending in Q3 2019 increased. According to the CBN report, the increased availability of secured credit to households in Q3 2019 came as a result of increased market share and high-risk appetite of lenders. Essentially, the high-risk appetite of lenders means lenders are willing to take high chances when lending to households.

Guaranty Trust Bank Plc, loans

Segun Agbaje, CEO of GTBank

Meanwhile, the CBN report showed that secured loans to households are expected to increase in the fourth quarter of 2019. According to the CBN, this will be due to improving liquidity position and higher risk appetite of lenders.

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While there was an increase in both unsecured and secured lending to households, lenders recorded lower losses given by default from households lending in Q3 2019 and this is expected to further improve in Q4 2019.

[READ ALSO: GTB, UBA, Zenith, Access Banks’ salary advance loans]

The bottom line

A quick look at the trend of unsecured credit to households over Q1 to Q3 2019 showed that despite the fluctuations in trend of approved loan applications, the availability of unsecured credit to households improved.

While the CBN attributed the increase in unsecured credit provision to improved risk appetite and improved liquidity, this might also be attributed to the rising number of fintech companies in the lending market in Nigeria.

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Abiola has spent about 14 years in journalism. His career has covered some top local print media like TELL Magazine, Broad Street Journal, The Point Newspaper.The Bloomberg MEI alumni has interviewed some of the most influential figures of the IMF, G-20 Summit, Pre-G20 Central Bank Governors and Finance Ministers, Critical Communication World Conference.The multiple award winner is variously trained in business and markets journalism at Lagos Business School, and Pan-Atlantic University. You may contact him via email - [email protected]

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Business News

DPR says it has accurate data of country’s crude production volume

Head, Public Affairs of DPR, Mr Paul Osu, said every litre of crude produced in the country was adequately captured during the process of extraction.

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Nigerian oil cargo

The Department of Petroleum Resources (DPR) has said that the agency has an accurate record of the crude oil produced in the country.

This is in reaction to claims that the exact volume of crude oil produced in the country has remained unknown.

While making this disclosure in a statement in Lagos, the Head, Public Affairs of DPR, Mr Paul Osu, said every litre of crude produced in the country was adequately captured during the process of extraction.

What the Head, Public Affairs of DPR is saying

Osu said DPR has the responsibility of monitoring and accounting for crude oil production which is the basis for determining the government’s revenue through royalty payments by operators for sustainable development.

He said: “As a further step to boosting crude accounting process from production to export, DPR recently launched the National Production Monitoring System (NPMS).

NPMS is an online platform for direct and independent acquisition of production data from oil and gas facilities in Nigeria.

NPMS as an electronic data transmission tool at production and export terminals is designed to better predict the performance of oil and gas reservoirs and better production forecasting.”

Osu noted that the NPMS tool enables DPR to exercise surveillance, perform production monitoring and data analysis for utilisation and forecasting.

He said DPR as a business enabler and opportunity house would continue to develop robust and strategic initiatives to ensure timely and accurate payment of rents, royalties and other revenues due to the government.

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In case you missed it

  • It can be recalled that the Executive Secretary of the Nigeria Extractive Industries Transparency Initiative (NEITI), Orji Ogbonnaya-Orji, on Thursday said the exact volume of crude oil produced in Nigeria, especially at the deep offshore fields, is not known by anyone.
  • He said the exact volume of crude oil produced in Nigeria had remained unknown because of the absence of meters at wellheads and the lack of capacity to monitor deep offshore fields.

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Business

Sanwo-Olu flags off Red line rail project as Lagos compensates property owners

The 37-km Rail Mass Transit Red Line will traverse from Agbado to Marina, moving over 1 million commuters daily.

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FG inks $3.9 billion deal with Chinese firm for construction projects

The Lagos State Governor, Babajide Sanwo-Olu, has flagged off the construction of the 37-km Rail Mass Transit Red Line, which will traverse from Agbado to Marina, moving over 1 million commuters daily.

This is as the state started the compensation of identified project-affected persons of the Lagos Rail Mass Transit Red Line project with the Governor handing over cheques to displaced property owners who were affected by the right-of-way.

The groundbreaking ceremony which took place at the Ikeja Train Station on Thursday was witnessed by the Minister of Transportation, Rotimi Amaechi, who was represented by the Director-General of the Nigerian Maritime and Safety Agency (NIMASA), Dr Bashir Jamoh, and the Deputy Governor of Lagos State, Dr Obafemi Hamzat.

What the Lagos State Governor is saying

Sanwo-Olu said the Red Line project which is to be fully operational in the last quarter of 2022 with 8 train stations from Agbado to Oyingbo, is another initiative of his administration to deliver enduring infrastructure for the transport system and make Lagos a competitive megacity.

The Governor said: “Today’s flag-off of the construction of infrastructure for the standard gauge Red Line is another promise kept and it demonstrates, in practical terms, our commitment to achieve the objectives of traffic management and transportation pillar in our development agenda. This is because we recognise the role which an efficient transportation system plays in enhancing people’s quality of life and as a major driver of socio-economic development.

The State’s Strategic Transport Master Plan, which encompasses a number of projects that are germane to achieving our vision for a Greater Lagos, is founded on imperatives that seek to increase transport choices for all users and make the transit system integrated, attractive, convenient, affordable and accessible.

Since efficient transportation is the backbone of any economy, we are happy to be committing this investment in our transport infrastructure, so that our people can meet their daily targets and aspirations. This all-important transport project we are all gathered to witness today represents a major step in this direction.

Sanwo-Olu said that in order to facilitate smooth operations of the Red Line, the State Government would be constructing ancillary infrastructure, including 6 overpasses at strategic level crossing points along the rail corridor to eliminate interactions between the rail system, vehicular and pedestrian traffic.

The overpasses will provide grade-separated crossings that will enhance safety for the rail system and road users.

He said: “The unique characteristics of the Red Line is its integration with the Ikeja Bus Terminal, Oshodi–Abule Egba Bus Rapid Transit (BRT) lane, the future Orange Line, which goes from Ikeja to Agbowa, and the General Aviation Terminal One of the Murtala Muhammed International Airport through a skywalk.

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Another unique feature of the Red Line is that all the stations have elevated concourses with either at grade island or side platforms for easy boarding and alighting of passengers. The Red Line also integrates with our Bus Terminals at Oyingbo, Yaba, Oshodi, Ikeja and Iju, giving modal options to our people in their daily commute, either for business or leisure.”

The Governor presented cheques of different amounts as compensation to 25 residents whose properties, businesses and accommodation will be affected by the project. Over 263 properties are affected with many of the property owners and tenants smiling as they got their cheques.

What you should know

  • The Red Line is part of the state government’s vision of an integrated multimodal transportation system contained in the State’s Strategic Transport Master Plan (STMP), developed by LAMATA, which aims ultimately to birth a world-class transportation network that will support the state’s profile, as the economic capital of Nigeria and Africa.
  • It is to raise mass transportation capacity in the State, complementing the Blue Line that traverses from Okokomaiko to Marina.
  • The rail corridor will be constructed in three phases. The first phase (Agbado-Iddo), which will be completed in 24 months, will be sharing the track with the Federal Government’s Lagos-Ibadan Railway Modernisation Project up to Ebute – Metta and will have its dedicated track from Ebute – Metta to Oyingbo and reduce travel time from about two and a half hours to just 35 minutes.

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