Bank’s credit to the private sector fell quarter-on-quarter (q/q) by N140 billion to N15.6 trillion in the first quarter of 2018 (Q1’18). Nigeria Bureau of Statistics (NBS) disclosed this in its latest banking sector report titled: “Sectorial Breakdown of Credit, e-payment Channels, and Staff Strength Q1’18 Report”.
According to the report, banks lent N15.6 trillion to the private sector in Q1’18, down from N15.74 trillion in the fourth quarter of 2017 (Q4’17). The report showed that the oil & gas and manufacturing sectors received the highest credit during the quarter. While the oil & gas industry got N3.42 trillion, the manufacturing sector received N2.07 trillion.
Analysis showed that the mining & quarrying sector, power & energy sector and transportation & storage sector suffered the highest decline in credit in Q1’18 compared to Q4’17. Further analysis indicated that the information & communication sector, general sector, and ‘other’ sectors enjoyed the highest increase in credit allocation in Q1’18.
The mining & quarry sector suffered the highest decline as credit to the sector fell by 58 percent to N10.5 billion in Q1’18 from N25.2 billion in Q4’17. This was followed by credit to power & energy sector, which fell by 28 percent to N426.5 billion in Q1’18 from N453.9 billion in Q4’17.
Credit to the transportation and storage sector (services) also fell by 12.2 percent to N291.7 billion in Q1’18 from N332.09 billion in Q4’17. On the other hand, credit to the information sector rose by 11.7 percent to N865.3 billion in Q1’18 from N774.4 billion in Q4’17.
Credit to the general sector also increased by 10.6 percent to N1.15 trillion from N1.04 trillion in Q4’17. Similarly, credit to ‘other’ sectors rose by 8.5 percent to N384.9 billion in Q1’18 from N354.8 billion in Q4’17.