Nume Ekeghe
The President/Chairman of Council, the Chartered Institute of Bankers of Nigeria (CIBN), Ken Opara, has mentioned the banking sector recapitalisation programme not too long ago introduced by the Central Financial institution of Nigeria (CBN) would allow banks to increase extra credit score to the economic system’s productive sectors.
He said this in his welcome remarks on the CIBN’s 2024 annual lecture held in Lagos, yesterday.
He mentioned whereas there was a notable enchancment in liquidity in the actual sector in current instances, the deliberate banking sector recapitalisation programme was a welcome improvement as a result of the quantity of credit score within the nation to sectors resembling agriculture, manufacturing, and providers is considerably low.
Talking on the theme of the lecture, “Bettering Availability of Credit score within the Nigerian Actual Economic system: The Crucial Significance of Liquidity” he mentioned: “Regardless of the numerous relevance of the actual sector, entry to credit score for such key sectors in comparison with different climes is comparatively low. In keeping with the survey report carried out in additional than 40 economies and launched by Statista in 2024, practically $141 trillion price of credit score had been lent to the actual sector in superior economies within the second quarter of 2022. The figures have been twice as excessive as the quantity of credit score to the identical sector in rising markets.
“It’s price highlighting the notable enhancements in liquidity inside Nigeria’s actual sector. In keeping with information from the CBN, the Internet Home Credit score stood at N66.4 trillion as of December 2022, showcasing the substantial credit score prolonged by monetary establishments to the actual sector of the economic system.
“This determine skilled a major surge to 96.1 trillion Naira by December 2023, highlighting the super potential for progress and improvement in the actual sector.
“Nonetheless, the quantity of credit score to the important thing sectors in Nigeria is as follows: Agricultural sector N5.8 trillion representing about 6 per cent of the overall credit score. Manufacturing sector is N19.7 trillion representing roughly 21 per cent of the overall credit score and providers sector N36 trillion representing 37.4 per cent of the overall credit score.
“I humbly suggest that we think about providing extra credit score to those key sectors and notably the agriculture sector. It is because of this that the recapitalisation train is a welcome improvement.
“The not too long ago introduced upward evaluation of the Minimal Capital Necessities of Nigeria by the Central Financial institution of Nigeria would additional empower banks to increase extra credit score to the economic system’s productive sectors.”
Additionally, in his speech on the occasion, the Governor of Lagos State, Mr. Babajide Sanwo-Olu, who was represented by his Commissioner for Finance, Mr. Abayomi Oluyomi, recommended the CIBN for bringing the difficulty of liquidity to the entrance burner.