Banks loan to private sector hits N71.7trn, oil and gas leads

The National Bureau of Statistics (NBS) says the oil and gas industry was one of the top credit allocations for private sector businesses in 2021 in its October 2022 banking sector data.

The bureau noted that the total credit allocated to the private sector in Q1 2021 stood at N62.28 trillion. For Q2/2021, total credit allocation increased by 5.64% to N65.79 trillion.

The Q3 2021 credit allocations to the private sector increased by 2.33%, showing a total of N67.33 trillion.

Bank credit refers to the amount of credit available to a business or individual from a banking institution in the form of loans. Bank credit, therefore, is the total amount of money a person or business can borrow from a bank or other financial institutions.

READ ALSO: Non-performing loans increase as banks‘ credit to economy hits N21.12bn

Total credit allocation for Q4 2021 increased by 6.52%, showing a total of N71.71trn. The oil and gas industry topped all quarters with the highest bank credit allocation, overriding the manufacturing and general services sectors.

In the report, credit allocations for the oil and gas industry were at N11.97 trillion (19.22%), the highest when compared to the manufacturing sector at N9.82 trillion (15.77%) and the general services industry at N5.55 trillion (8.92%).

It was stated that for Q1/2021, the oil and gas industry attracted N11,967,670.27, while the power and energy industry attracted N1, 358.850.52.

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