Banking sector credit to the private sector stood at N19.87trn as of Q3 2020, an increase of 5.58% compared to the N18.82 trillion recorded in Q2 2020.
On the other hand, Non-performing loans in Q3 2020 declined by 3.5% to N1.17 trillion from N1.21 trillion recorded in the preceding quarter.
According to the Selected Banking Sector Data released by the National Bureau of Statistics (NBS), Oil & Gas and Manufacturing sectors got credit allocation of N3.74trn and N3.03trn to record the highest credit allocation as at the period under review.
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The credit to the Manufacturing sector grew by 15.3% QoQ while that of the Oil & Gas industry rose by 18.8% QoQ.
Banking sector credit to the government grew by 8.0% QoQ to N1.6 trillion. While credit to Trade/General Commerce rose by 6.4% to N1.27 trillion in Q3 2020.
Credit to Finance, Insurance, and Capital Market rose by 7.1% to N1.4 trillion
Agriculture got a credit allocation of N932.76 billion, an increase of 4.7% compared to the previous quarter.
The power and Energy sector received a total of N416 billion in Q3 2020, a slight increase of 2.1% compared to Q2 2020.
Credit to Mining & and Quarrying was relatively unchanged at N11.46 billion, while credit to Education rose by just 0.4% to settle at N73 billion.
Oil and Gas holds the largest non-performing loan amounting to N238.26 billion despite a decline of 11.36%. The Construction sector holds the second-largest NPL amounting to N171.41 billion. This represents an increase of 2.11% within the period under review.
Information and communication and Manufacturing industry hold NPLs amounting to N108.5 billion and N107.09 billion respectively. Information and Communication NPL rose by 3.95% while that of Manufacturing declined by 8.68% with the period in review compared to the previous quarter.
By: Ifunanya Ikueze