Strong indications have emerged that Deposit Money Banks’ at the end of November 2019, advanced a total of N35.51 trillion net domestic credit to the Nigerian economy, at a time the Central Bank of Nigeria recorded N3.17 trillion deposits from 11 commercial banks in nine months.
This means that credit to the economy rose from N28.65 trillion in January to N35.51 trillion, representing a rise in net domestic credit in the economy by N6.86 trillion or 23.9per cent, in 2019 (between January and November, 2019), data published by the Central Bank of Nigeria (CBN) showed.
Similarly, data obtained from the financial statements of the commercial banks listed on the Nigerian Stock Exchange showed that the deposits to the CBN were made between January and September 2019.
Mandatory reserve deposit is not available for use in a bank’s day-to-day operations as it represents a percentage of the customers’ deposits and is non-interest bearing.
The amount, which is based on qualified assets, is determined by the CBN from time to time and for the purpose of statement of cash flows and the balance is excluded from the cash and cash equivalents.
Further analysis of the data showed that from Access Bank Plc, the CBN received N79.63 billion while N985.98 billion was recorded from Ecobank.
Fidelity Bank Plc, First City Monument Bank Plc and FBN Holdings each recorded N418.30 billion, N172.73 billion and N697.45 billion deposits with the CBN.
Guaranty Trust Bank Plc, Stanbic IBTC and Sterling Bank paid N89.61 billion, N319.7 billion and N123.16 billion to the CBN during the period while N300.59 billion, N518.86 billion and N9.43 billion were received from Union Bank Nigeria Plc, United Bank for Africa Plc and Unity Bank Plc.
It should be recalled that the CBN was given a legal backing by the CBN Act No.24 of 1991 to obtain from all banks returns on all credits with a minimum outstanding balance of N100,000 (now N1million and above of principal and interest), for compilation and dissemination by way of status report to any interested party (operators or regulators).
Meanwhile, analysis of Banks’ loan in 2019 showed that out of the total of N35.51 trillion net credit in the domestic economy, credit to private sector rose to N26.4 trillion, while credit to government also rose to N9.10 trillion.
That is, in the Nigerian economy, credit to private sector constitutes 74per cent, while credit to government constitutes 26per cent of the total net domestic credit.
During the year, credit to private sector hit the highest in December 2019. On the other hand, credit to the government rose to the highest in October.
A closer look shows that credit to government dropped by N1.35 trillion between October and December 2019.
Across the sectors, as of the end of September 2019, the oil and gas sector recorded the biggest gross domestic loan estimated at N4.50 trillion, followed by manufacturing (N2.56 trillion) and Government (N1.34 trillion).
For many women, menstruation comes with a mix of physical discomfort and emotional stress. From…
This represents the first time in ICAO’s history that its Council has made a determination…
"We are going to make sure that Radio Niger and the Niger State Television are…
According to him, favouring the Afrikaners was not because they are white, adding that their…
Affordable housing advocates have suggested way out of housing loans default by the retired civil…
FRESH concerns have been raised over the outdated land and housing policies in Nigeria. Raising…
This website uses cookies.