Business News
CBN says bank credit grew by N290 billion in 6 weeks as lending rates drop
The CBN has disclosed that the gross credit to the economy grew by N290.13 billion in about 6 weeks.
The Central Bank of Nigeria (CBN) has disclosed that the gross credit to the Nigerian economy grew by N290.13 billion in about 6 weeks, between the end of August 2020 and November 13, 2020.
A total gross credit growth of N3.976 trillion was also recorded, as it grew from N15.567 trillion at the end of May 2019 to N19.544 trillion as at November 13, 2020.
READ: CBN grants approval for banks to debit accounts of loan defaulters
This disclosure is contained in the personal statement of the Deputy Governor, Financial System, CBN, Aisha Ahmad, issued as part of the apex bank’s communique after the Monetary Policy Committee (MPC) held on November 23 and 24, 2020.
Ahmad said that sustaining critical support to the economy through this crisis remains a priority as credit growth remained on an upward trajectory with robust soundness indicators and sustained decline in average lending rates.
READ: Analysis: GTB is minting profits but CBN is squeezing its cash.
She said much of this credit which was channeled to manufacturing, consumer, general commerce and agriculture – all key employment generating sectors, was largely driven by effective implementation of the Loan to Deposit Ratio (LDR), various government interventions and other complementary policies to ramp up credit to the economy.
The statement from the CBN Deputy Governor partly reads,
- “For instance, gross credit grew by N290.13 billion between end of August 2020 and November 13, 2020; while total gross credit growth of N3,976.34 billion was recorded from N15,567.66 billion at end of May 2019 to N19,544.00 billion at November 13, 2020. Much of this credit was channeled to manufacturing, consumer, general commerce and agriculture – all key employment generating sectors.
- “This was broadly driven by effective implementation of the Loan to Deposit Ratio, interventions and other complementary policies to ramp up credit to the economy.’’
READ: Ahead of CBN’s policy implementation, Fidelity Bank’s LDR hits 80%
Ahmad noted that the gradual decline reported in lending rates is a positive development that improves access to credit for more households and businesses with a view to stimulating economic activity, creating jobs and driving more sustainable and inclusive growth.
She said that as at October 2020, 86.23% of total loans granted to over 1 million customers by deposit money banks were at interest rates considerably below 20%, an improvement of 76.43% that was achieved as at July 2019.
READ: CBN: Unconventional monetary policies needed to grow and diversify the economy
Going further, she said that this low interest rate environment was also reflected in the Open Buy Back rate which stood at 1.88% at end of October 2020, an indication of a highly liquid banking system.
READ: GTBank’s Segun Agbaje shares his thoughts on CBN’s loan policies
What you should know
- The CBN as part of measure to stimulate the economy has introduced several policies to boost credit to Nigerian businesses. Some of these policies include the increase of LDR to 65%, the various intervention programmes targeted at Micro, Small and Medium Enterprises (SMEs) at low interest rates and so on.
Corporate Press Releases
N1m up for grabs with Quickteller Business contest
To join in the contest, entrepreneurs are to post a 1-minute video of themselves explaining how N1 million will boost their businesses.
Interswitch has announced a virtual pitch tagged ‘Boost your business with Quickteller’ where one business owner has the opportunity to win N1 million cash. The promo is believed will help businesses signed onto the Quickteller Business platform boost their business further.
To contest for the prize money, business owners are simply required to complete their account activation on Quickteller Business and they stand a chance of winning.
To join in the contest, entrepreneurs are to post a 1-minute video of themselves explaining how N1 million will boost their businesses. The videos should be uploaded on Facebook, Instagram, Tiktok or YouTube with the hashtag #boostwithquickteller. To submit an entry, business owners are required to paste their post’s URL in the video URL section of the entry form on the Quickteller Business site, share the entry with friends and family and invite them to vote.
They must register and activate their businesses on the Quickteller Business platform using the referral code ‘Boost’. Any entry without a referral code will be rendered invalid.
Speaking about the promo, Cherry Eromosele, Group Chief Marketing and Communications Officer at Interswitch noted that the promo is important to Interswitch as it helps business owners – not only to boost their businesses – but to provide solutions that addresses some of the pain points of business owners. “At Interswitch, we are committed to growing the business community by providing simple and scalable payment solutions because it is critical to their growth and essentially to the national economy at large,” she added.
The Quickteller Business platform provides seamless payment solutions for businesses and their customers. The platform is an intuitive and robust one that enables businesses of all sizes, small, medium, large, to take their businesses online even if they did not have prior technology infrastructure or website.
The top 10 entries with the highest votes by 11:59pm on Friday, April 30, 2021 will qualify to participate in the grand finale.
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On the Quickteller Business platform, business owners can get paid by anyone, from anywhere without hassles. From massive corporations to smaller tech-savvy businesses, Quickteller Business makes payment easy for entrepreneurs and their customers.
About Quickteller Business
Quickteller business provides various payment tools for freelancers and small businesses operating without a website to receive payments easily. The platform seamlessly integrates with your existing website or store to provide various payment options.
About Interswitch
Interswitch is a leading technology-driven company focused on the digitisation of payments in Nigeria and other countries in Africa. Interswitch’s vision is to make payments a seamless part of everyday life in Africa, and its mission is to create transaction solutions that enable individuals and communities to prosper across Africa.
We began in 2002 as a transaction switching and electronic payments processing business, building and managing payment infrastructure, delivering innovative payments solutions and driving transactions across Nigeria and other African markets. We provide secure solutions and services that facilitate convenience and real value for consumers, businesses, governments and other organizations, helping to reduce costs, improve operational efficiency and drive sustainable revenue growth.
Business
FG launches National Gender Steering Committee for Gender Policy in the agricultural sector
The policy document is a developmental strategy for poverty reduction and it is expected to empower small scale holder farmers who are predominately women.
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