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…Nigerians withdraw N6.5trn from ATM

…As banks’ bad loans drop by 24% to N1.8trn

By Babajide Komolafe & Elizabeth Adegbesan

THE value of electronic payment transactions (e-payment) rose sharply by 32 per cent to N138 trillion in 2018, reflecting increased adoption of electronic payments for goods and services.

Meanwhile, non-performing loans (bad loans) in the banking industry fell by 24 percent year-on-year to N1.8 trillion in 2018 even as banks reduced lending by 3.8 percent. National Bureau of Statistics disclosed this in its banking sector data for the fourth quarter of 2018 (Q’18) titled: “Sectorial breakdown of Credit, ePayment Channels and Staff Strength”.

The report showed that value epayment transactions rose by 32 percent to N138.59 trillion in 2018 from N104.6 trillion in 2017, while the volume of transactions rose by 6 percent to 2.11 billion in 2018 from 1.5 billion in 2017. Epayment transactions was dominated by NIBSS Instant Payment (NIP) which accounted for N80.43 trillion representing 57 percent of the value of transactions, 663 million transactions representing 31 percent of total volume of transactions.

The report also showed that Nigerians withdrew N6.5 trillion through Automated Teller Machines (ATM) in 2018 in 875 million transactions.

In its quarterly analysis of epayment transactions, the NBS said: “A total volume of 457.22 million transactions valued at N32.48 trillion were recorded in Q1 2018 as data on Electronic Payment Channels in the Nigeria Banking Sector revealed.

“Automated Teller Machine (ATM) transactions dominated the volume of transactions recorded. 212.37 million Volume of ATM transactions valued at N1,568 billion were recorded in Q1 2018.

“A total volume of 509.67 million transactions valued at N32.90 trillion were recorded in Q2 2018 as data on Electronic Payment Channels in the Nigeria Banking Sector revealed.

Automated Teller Machine (ATM) transactions dominated the volume of transactions recorded. 217.41 million volume of ATM transactions valued at N1.603 billion were recorded in Q2 2018.

“A total volume of 529.48 million transactions valued at N34.01 trillion were recorded in Q3 2018 as data on Electronic Payment Channels in the Nigeria Banking Sector revealed.

Automated Teller Machine (ATM) transactions dominated the volume of transactions recorded. 220.27 million volume of ATM transactions valued at N1.593 billion were recorded in Q3 2018.”

“A total volume of 616.52 million transactions valued at N39.15trillion were recorded in Q4 2018 as data on Electronic Payment Channels in the Nigeria Banking Sector revealed.

NIBSS Instant Payments (NIP) transactions dominated the volume of transactions recorded. 228.21 million volume of NIP transactions valued at N23.57 trillion were recorded in Q4 2018.”

Bad loans drop to N1.8tr

Meanwhile, non-performing loans (bad loans) in the banking industry fell by 24 percent year-on-year to N1.8 trillion in 2018 even as banks reduced lending by 3.8 percent.

According to NBS, banks’ lending to the economy dropped to N15.353 trillion in 2018 from N15.959 trillion in 2017, indicating 3.8 percent reduction for the year.

The report also showed that banks were able to reduce non performing loans (NPLs) also known as bad loans by 24 percent to N1.79 trillion in 2018 from N2.363 trillion in 2018.

Though ratio of non-performing loans to total loans dropped by 21 percent in 2018, it however remained higher than the five percent regulatory threshold.

According to the report, ratio of non-performing loans to total loans dropped to 13.22 percent in 2018 from 16.72 percent in 2017.

In its quarterly analysis of banking sector credit to the economy in 2018, NBS said: “In terms of credit to private sector, the total value of credit allocated by the banking sector stood at N15.60 trillion as at Q1 2018. Oil & Gas and Manufacturing sectors got credit allocation of N3.42 trillion and N2.07 trillion to record the highest credit allocation as at the period under review. As at Q1, 2018, the total number of banks’ staffs decreased by -0.93 percent from 90,453 in Q4 2017 to 89,608.

“In terms of credit to private sector, the total value of credit allocated by the bank stood at N15.34 trillion as at Q2 2018. Oil & Gas and Manufacturing sectors got credit allocation of N3.45 trillion and N2.02trn to record the highest credit allocation as at the period under review.

As at Q2, 2018, the total number of banks’ staffs increased by 13.67 percent QoQ from 89,608 in Q1 2018 to 101,861.

“In terms of credit to private sector, the total value of credit allocated by the bank stood at N15.59 trillion as at Q3 2018. Oil & Gas and Manufacturing sectors got credit allocation of N3.59 trillion and N2.15trn to record the highest credit allocation as at the period under review.

As at Q3, 2018, the total number of banks’ staffs increased by 0.95 percent QoQ from 101,861 in Q2 2018 to 102,821.

“In terms of credit to private sector, the total value of credit allocated by the bank stood at N15.13 trillion as at Q4 2018. Oil & Gas and Manufacturing sectors got credit allocation of N3.55 trillion and N2.23 trillion to record the highest credit allocation as at the period under review.

As at Q4, 2018, the total number of banks’ staffs increased by 1.80 percent QoQ from 102,821in Q3 2018 to 104,669.”

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