CBN pegs volume of consumer credit at N785.53bn

The Central Bank of Nigeria (CBN) said the volume of consumer credit granted by lenders improved during the second half of 2015.

This was amid continuing efforts by banks to excel in the retail segment of the market; latest data released by the apex bank has shown.

The CBN’s Financial Stability Report (FSR) for the end of December 2015, showed that the aggregate outstanding consumer credit stood at N785.53 billion at the end of the second half of 2015, compared with N767.69 billion at the end-June 2015.

This reflected an increase of 2.32 per cent, compared with 3.49 per cent at the end of the first half of last year. The study also stated that consumer credit constituted 4.34 per cent, as a ratio of total credit to the core private sector, compared with 4.18 per cent in the first half of 2015.

 However, the report noted: “Relative to the first half of 2015, the amount of credit extended to the various sectors by banks during the review period showed a downward trend.

“Total credit to the various sectors of the economy fell by 1.44 per cent to N13, 328.7 billion in the second half of 2015, as against the increase of 7.07 and 16.62 per cent in the first half of 2015 and the second half of 2014 respectively.”

In addition, the study revealed that the oil and gas sector continued to attract the highest share of total credit, as it accounted for 24.82 per cent of the total credit, compared with 23.78 per cent in the first half of 2015.

It was followed by the manufacturing sector, which accounted for 13.91 per cent of the total credit, compared with 13.98 per cent in the preceding half year. Also, agriculture, forestry and fishery accounted for 4.00 per cent of the total credit, indicating a 0.13 percentage point decline below the 4.13 per cent recorded in the preceding half year.

Significantly, the report said: “The structure of bank credit in the second half of 2015 indicated the continued dominance of loans and advances of short-term maturities.

“Credit maturing within one year accounted for 47.1 per cent, compared with 44.5 per cent at the end of the first half of 2015. The medium-term five year and long-term six year maturities stood at 16.9 and 36.0 per cent, compared with 18.8 and 36.7 per cent, at end-June 2015, respectively.”