Assets of Nigerian banks hit $151bln in August 2022 as economy remains resilient

A close up image of Nigerian bank notes and coins. Getty Images

Staff Writer, ZAWYA

Nigerian banks’ assets rose by 10.72 trillion nairas ($22.61 billion) between August 2021 and August 2022 to hit 66.76 trillion nairas ($151.49 billion), The Punch newspaper reported, citing the Central Bank of Nigeria.

The banking sector remained resilient amid economic challenges, Monetary Policy Committee member Kingsley Obiora said in a statement. 

Total assets of the banking industry showed an increase of 19.13% from N56.04 trillion in August 2021 to 66.76 trillion in August 2022, driven by balances with the central bank, banks, investments, and credit expansion to the real sector.

Therefore, the total flow of credit to the economy increased from 22.62 trillion nairas in August 2021 to 28.12 trillion narias, representing an increase of 24.3% to the key sectors of the economy, including oil and gas, manufacturing, general, governments and commerce.

The industry non-performing loan ratio stood at 4.8% at the end of August 2022 compared with 6% at the end of August 2021, Obiora said.

The decline in NPLs was attributable to write-offs, restructuring of facilities, global standing Instruction and sound credit risk management by banks, the report noted.

(Editing by Seban Scaria

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