Nigerian Banks’ Total Assets Rose by N11.15 Trillion

The Central Bank of Nigeria (CBN) has said the assets of Nigerian banks grew by N11.15 trillion to N64.32 trillion in the 12 months ended in April 2022.

In the report published by the apex bank, banks’ assets grew by 21% to N64.32 trillion in April 2022 from N53.17 trillion recorded in April 2021.

Kingsley Obiora, a member of the Monetary Policy Committee, in his personal statement released by the CBN, said 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 per cent 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 per cent.”

Obiora explained that credit flow increased in the following sectors, manufacturing, consumer credit, general commerce, information and communication and agriculture.

On non-performing loans, non-performing loans in the banking sector stood at 5.31% at the end of April 2022, slightly above the 5% target of the apex bank and better than the 5.89% recorded in April 2021.

CBN said the improvement was due to the restructuring of facilities, efficient recovery strategies and sound management practices by Other Depository Corporations.

Mr. Johnson Chukwu, the Managing Director/Chief Executive Officer, Cowry Asset Management Limited, attributed the improvement to an increase in money in circulation.

He said, “One is the increase in money in circulation, and that increase is coming about because the Federal Government is borrowing by way and means and that is injecting liquidity into the economy and it will tremendously contribute to the level of currency in circulation, and ultimately the banking assets side.

“This is because given the level of financial inclusion, given that people hardly keep money at home, any significant increase in money in circulation will have an impact on the banks’ total assets.

“Secondly, the banks have actually seen a significant increase in loans. Loan creation also means money creation.”