Nigerian banks’ total assets rose by N11.15tn in one year to N64.32tn as of the end of April, the Punch reports.
Figures obtained from the Central Bank of Nigeria revealed that the assets of the lending institutions had hit N53.17tn in the corresponding period of 2021. The 2022 numbers showed a 21% increase over the period.
According to a personal statement of a member of the Monetary Policy Committee, Kingsley Obiora, which was released by the CBN, the growth was driven by balances with CBN/banks, OMO bills, and credit to the real sector of the economy.
He said, “The banking system remained sound, stable and resilient. Total assets of the banking industry grew by 20.97% from N53.17tn in April 2021 to N64.32tn in April 2022, driven by balances with CBN/banks, OMO bills, and credit to the real sector of the economy.
“As a result, the total flow of credit to the economy increased to N26.10tn in April 2022 from N21.45tn in April 2021, representing an increase of 21.66%.”
Obiora said some sectors with the increased credit included: manufacturing, consumer credit, general commerce, information and communication, and agriculture.
According to the CBN, the non-performing loans ratio stood at 5.31% at the end of April 2022, slightly above the prudential threshold of 5.00%.
It was, however, an improvement from 5.89 per cent at the end of April 2021, reflecting recoveries, restructuring of facilities and sound management practices by Other Depository Corporations.
In the interbank market, it stated, the Open Buy Back rate trended upward from 6.62% in March to 7.49% in April 2022, indicating a tight banking liquidity condition, which helped to rein in inflationary pressures and safeguard a stable banking system.