- Nigerian banks have witnessed great growth in recent years with their assets growing astronomically, according to the Central Bank of Nigeria (CBN)
- The CBN Deputy Director, Kingsley Obiora stated that the banks' assets have grown by N11.15 trillion in one year
- According to him, this represents 20.97 per cent from N53.17 trillion in April 2021 to N64.32 trillion in April this year
Nigerian banks have seen their vaults balloon in assets by 20.97 per cent from N53.17 trillion in April 2021 to N64.32 trillion in April 2022, indicating an N11.15 trillion growth in one year.
According to Nairametric, this was revealed by the Central Bank of Nigeria’s Deputy Governor, Kingsley Obiora who is a member of the Monetary Policy Committee (MPC).
Non performing loans see improvements
Obiora also said that the non-performing loans (NPLs) ratio stood at 5.31 per cent by the end of April 2022, a slight improvement of 5 per cent.
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The CBN director said that the banking industry stayed sound, sturdy and resilient, saying that the total assets of the industry grew by 20.97 per cent.
He said, as a result, the total flow of credit to the economy went up to N26.10 trillion in April this year from N21.45 trillion in April 2021, showing an increase of 21.66 per cent.
The MPC member said manufacturing, consumer credit, general commerce, ICT and agricultural sectors increased in credit.
World Bank warns CBN on credit lending
Obiora praised the progress of the banking sector for improvements and said the success is due to sound management practises by the banks.
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The World Bank has cautioned Nigeria that the CBN’s low-interest loans jeopardise commercial banks that give loans on risk-adjusted pricing basis and needs to be scaled down.
The CBN interventions allow a 5 per cent per annum interest rate by the receivers of the loan and are likened to a subsidy as the loans originally attract an interest rate of 9 per cent per annum and even at 9 per cent.
Under the CBN interventions, the 5% per annum interest rate paid by the receivers of the loan is akin to a subsidy as the loans originally attract an interest rate of 9% per annum, and even at 9%, the rate is still a huge discount when compared to high rates charged by commercial banks.
Zenith, First Bank lead as Nigeria dominate top 20 list of largest banks operating in West Africa
Legit.ng reported that Nigerian banks once again dominated the table of top banks operating in West Africa.
This is according to a report from African Business, as West and Central Africa with tier 1 capital rise by 15% to $2.3bn (N944.19bn)
Zenith leads the table that includes eight Nigerian banks in the top ten list of West African banks.