Tuesday, September 21, 2021

    Commercial banks’ credit to domestic economy up 1.0% as assets, liabilities hit N36.26 trillion

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    Gbenga Samsonhttp://ThisDayLive.com
    Samson Gbenga Salau [Editorial Board Adviser] Gbenga Samuel Salau is a professional journalist with over 17 years experience in journalism, he is a graduate of Communication and Language Arts, University of Ibadan. On completion of his youth service, he joined The Guardian as a freelance journalist and was later absorbed as a staff. While in the University, he was a campus journalist reporting for the Independence Hall and Faculty of Arts Press Clubs. As a campus journalist, he won the following awards; Independence Hall Press Best News writer; University of Ibadan Union of Campus Journalists’ Best News Reporter/Writer; First Runner-up, Reuben Abati Award for Investigative Journalism; Association of Faculty of Arts Students’ Press Best Reporter; University of Ibadan Union of Campus Journalists’ Best Political Writer; Winner, Reuben Abati Award for Investigative Journalism, and University of Ibadan Union of Campus Journalists’ Best Interviewer. He served the Association of Communication and Language Arts Students, as the Public Relation Officer, the same year he was appointed the News Editor of the Association of Faculty of Arts Students Press. The following session, he was made the General Editor, and a member of the 13-man University of Ibadan Students’ Union Transition Committee. As a reporter in The Guardian, in 2014, he won the Promasidor Quill Award Best Report on Nutrition and DAME Business Reporting category. In the 2015 edition of the Promasidor Quill Award, he won the best Report on Nutrition and Brand Advocate Categories, while in 2016, he won the NMMA Print Journalist of the Year, first runner-up Golden Pen Reporter of the Year and SERAs CSR Awards. Gbenga Salau loves traveling, reading, and listening to songs with good lyrics no matter the genre.

    The Central Bank of Nigeria in its Q3 2018 Economic Report reveal the total liability and assets base of commercial banks in the country.

    According to the report, the total assets and liabilities of commercial banks stood at N36.26 trillion as at the end of August 2018, representing 0.8 per cent increase over the level as at the end of June 2018.

    According to the Apex Bank, the funds were sourced largely from mobilisation of unclassified and foreign liabilities, and realisation of claims on Central Bank. The funds were used, mainly, for payment of matured demand deposits, accretion to reserves and extension of credit to the private sector.

    Also at N19.30 trillion, banks’ credit to the domestic economy, at end of August 2018 showed an increase of 1.0 percent above the level as at end of June 2018. This is reflective of the rise in claims on both the Federal Government and the private sector in the review period.

    Total specified liquid assets of the banks was N11.26 trillion at the end of August 2018, representing 54.5 percent of the total current liabilities. At that level, the liquidity ratio was 2.0 percentage points and 24.5 percentage points above the levels as at the end of June 2018 and the stipulated minimum ratio of 30.0 percent, respectively.

    The loans-to-deposit ratio, at 65.89 percent, was 1.29 percentage points higher than the level at end of June 2018 but was 14.11 percentage points below the prescribed maximum of 80.0 percent.

    Federally Collected Revenue within the period
    At N2.52 trillion, Federally-collected revenue in the third quarter of 2018, was lower than the proportionate quarterly budget estimate of N3.32 trillion by 24.0 per cent. It, however, rose above the receipts in the preceding quarter by 8.9 per cent.

    The decline in Federally-collected revenue (gross) relative to the proportionate quarterly budget estimate was attributed to the shortfall in both oil and non-oil revenue components in the review period.

    Gross oil receipt, at N1.39 trillion or 55.2 percent of the total revenue, was below the proportionate quarterly budget estimate by 27.4 per cent. It also fell marginally below the receipts in the second quarter of 2018 by 0.3 per cent.

    Despite the increase in crude oil price, oil revenue declined relative to the proportionate budget owing to shortfalls in crude oil production and exports, arising from leakages and shut-ins/shut-downs at some NNPC terminals.

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