Loans

Borrowing Rate of ICT Firms Rises by N30 Billion in March 2022

The Central Bank of Nigeria (CBN) has revealed that loans obtained by Information and Communication Technology (ICT) firms have risen to a sum of N982.87bn in March, as against January’s N952.06bn, an increase of N30.81 billion.

According to the CBN sectoral analysis of credit report, loans were N952.06bn in January, N973.51bn in February, and N982.87bn in March.

Investors King gathered that prior to this, the CBN had established a legal framework for Open Banking in Nigeria in an effort to stimulate innovation and widen the range of financial products and services available to banks’ customers.

The Regulatory Framework for Open Banking in Nigeria, according to the CBN, establishes standards for data sharing across the banking and payments systems in order to stimulate innovation and expand the range of financial products and services available to bank customers.

Recall that in January, the CBN Governor, Godwin Emefiele had stated that “the policy focus of the bank for 2022 is with a pledge to sustain improved access to finance and credit for households and businesses, mobilise investment to boost domestic productivity, enable faster growth of non-oil exports, and support employment generating activities”.

He claimed that the country was able to alleviate some of the COVID-19 outbreak’s economic consequences.

He further stressed the necessity of all stakeholders cooperating to build a more resilient economy that can survive external shocks while still supporting growth and wealth creation in key areas.

Speaking about the importance of creating an efficient infrastructure ecosystem in Nigeria and the importance of improved infrastructure in the development of the Nigerian economy, he revealed that all necessary approvals had been obtained for the Infrastructure Corporation to begin operations in early 2022.

Further findings by Investors King revealed that the ICT sector, in the first quarter of 2022, recorded a growth at 20.54 per cent (year-on-year), 12.68 per cent points increase from the rate of 7.86 per cent recorded in the same quarter of 2021, and 14.84 per cent points higher than the rate recorded in the preceding quarter. The Quarter-on- Quarter growth rate recorded in the first quarter of 2022 was -1.87 per cent.

“The Information and Communications sector contributed 10.55 per cent to the total Nominal GDP in the 2022 first quarter, higher than the rate of 9.91 per cent recorded in the same quarter of 2021 and higher than the 9.88 cent it contributed in the preceding quarter”, the report noted.

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