In 2023, Nigeria’s banking sector witnessed a substantial increase in lending activities amid interest rate hikes, reflecting both the resilience of the economy and strategic efforts to support various sectors amid evolving challenges.
According to data released by the Central Bank of Nigeria (CBN), total credit extended by banks surged from N29.45 trillion in December 2022 to N44.54 trillion by December 2023, indicating a 51.23% rise in lending activities between the two years.
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10. Agriculture
The agriculture sector borrowed N442.89 billion from banks in 2023. This sector saw moderate growth in borrowings, with total debt rising to N2.26 trillion in 2023, marking a 24% increase from N1.81 trillion in 2022, crucial for food security and rural livelihoods.
9. Power and Energy
The power and energy sector borrowed N417.37 billion from banks in 2023. It witnessed increased funding, with total borrowings of N1.32 trillion in 2023, reflecting a 46% rise from N0.9 trillion in 2022, supporting initiatives to enhance energy access and diversify the energy mix.
8. Construction
The construction sector borrowed N654.68 billion from banks in 2023. Construction activities received increased funding, with total borrowings reaching N1.82 trillion in 2023, reflecting a 56% surge from N1.16 trillion in the previous year, supporting infrastructural development efforts.
7. Government
The government (which includes state and local governments) borrowed N387.21 billion from banks in 2023. The government borrowing increased moderately, with total debt reaching N2.69 trillion in 2023, marking a 17% rise from N2.31 trillion in 2022, aimed at financing budgetary deficits and infrastructure projects.
6. General
The general sector borrowed N1.22 trillion from banks in 2023. It received total borrowings of N3.95 trillion in 2023, reflecting a 45% increase from N2.72 trillion in 2022. It indicates diverse investment opportunities supported by banks.
5. Information & Communication
The information & communication sector borrowed N768.54 billion from banks in 2023, witnessing significant lending, with total borrowings amounting to N1.98 trillion in 2023, up by 64% from N1.21 trillion in 2022, reflecting the sector’s pivotal role in driving digital innovation.
4. Trade/General Commerce
Borrowing N1.33 trillion from banks in 2023, the trade and general commerce sector recorded borrowings of N3.55 trillion in 2023, marking a 60% increase from N2.21 trillion in 2022, highlighting the sector’s significance as a driver of economic growth and employment.
3. Finance, Insurance, and Capital Market
The finance, insurance, and capital market sector witnessed a surge in lending, with total borrowings reaching N4.33 trillion in 2023, up by 64% (N1.69 trillion) from N2.64 trillion in the previous year, reflecting the sector’s pivotal role in facilitating economic activities.
2. Manufacturing
Manufacturing recorded total borrowings of N7.73 trillion in 2023, reflecting a notable 39% increase from N5.57 trillion in 2022. This increase of N2.17 trillion likely suggests efforts to bolster industrial production and promote economic diversification.
1. Oil & Gas
The oil & gas sector emerged as the top recipient of bank loans in 2023, borrowing N5.19 trillion and having a total debt of N11.8 trillion. This marked a substantial 78% increase from the previous year’s total debt of N6.6 trillion, highlighting sustained investment in the sector despite global market volatility.
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