The National Bureau of Statistics (NBS) has disclosed that commercial banks reduced their lending to the economy by N292 billion in the second quarter (Q2) of 2017. The bureau in its report titled: “Selected Banking Sector Data” also disclosed that Electronic Payment Channels in the Nigeria Banking Sector hits N19.78 trillion in Q2 of 2017.
According to NBS report, Commercial banks’ lending to 17 sectors of the economy fell to N15.7 trillion in Q2 of 2017 from N16 trillion in first quarter (Q1) 2017, indicating a drop of N292 billion or 1.8 per cent. The 17 sectors according to NBS include Agriculture, Mining and Quarrying, Manufacturing, Oil and Gas, and Power and Energy, among others.However when compared to lending in the second quarter of 2016, commercial banks’ lending to the sectors increased by 0.57 per cent to N15.5 trillion. The report by NBS also showed that oil and gas sector got the largest credit of about N3.5 trillion, followed by the manufacturing sector with N2.22 trillion while power and energy dropped by 1.3 per cent to N466billion in Q2 2017.
In terms of credit to private sector, a total of N15.71 trillion worth of credit was allocated by the banks in Q2 2017. Oil and Gas and Manufacturing sectors got credit allocation of N3.53trillion and N2.22 trillion to record the highest credit allocation in the period under review. The report showed that the volume and value of electronic payment transactions stood at 327,366,042 and N19.78 trillion at the end of Q2 2017.Automated Teller Machine (ATM) transactions dominated the volume of transactions recorded. 187, 805, 431 volume of ATM transactions valued at N1.54 trillion were recorded in Q2 2017 while Nigeria Interbank Settlement System (NIBSS) Instant Pay (NIP) transactions came first in terms of value with N13.36 trillion.