Banks’ credit to private sector hits N15.5trn in May 2013

Net loans from Nigeria’s banking system to the private sector increased as at May 2013 by just 0.5 per cent to N15.5 trillion (US$96.8bn). The Central Bank of Nigeria Economic review for the month of May 2013 shows that year on year, the net loans to the organized private sector was 7.0 per cent, with the deposit money banks accounting for about 70 per cent of this figure while the Central Bank of Nigeria (CBN) made up the balance, mostly in the form of Asset Management Company (AMCON) bonds which were to be refinanced.

 

Meanwhile, the flow of credit from deposit money banks (DMBs) to the private sector increased to N15.408 trillion year-on-year as of April 2013.

The amount represented an improvement of 0.95 per cent or N146 billion, compared to the N15.262 trillion recorded in March as aggregate domestic credit (net), according to the CBN, grew by 17.46 per cent in April 2013.

This, it said, annualised to a growth rate of 52.38 per cent over the end-December 2012 level, compared to the contraction of 6.12 per cent recorded in the corresponding period of 2012.

But the Central Bank’s Money and Credit statistics showed that narrow money (M1), which includes all physical monies such as coins and currency along with demand deposits and other assets held by the apex bank, decreased to N6.764 trillion in April, as against the N6.854 trillion it attained in March.

However, the broad money (M2), which generally is made up of demand deposits at commercial banks and monies held in easily accessible accounts climbed to N15.623 trillion in April, from N15.585 trillion in March.

According to the bank, when annualised, M2 grew by 13.3 per cent, compared to the contraction of 0.03 per cent in the corresponding period of 2012. The growth in M2 was slightly below the growth benchmark of 15.2 per cent for 2013.

Source: The Sun