Total
geographical distribution of credit by state increased by 1.82 percent to N18.9
trillion in the second quarter of 2020 from N18.56 trillion in the first
quarter of 2020.1 Lagos State (N14.92 trillion) accounted for
78.94 percent of the total credit. Further disaggregation shows N77.6
billion was distributed as loan for mortgages in 2019 compared to N25
billion in 2018. 220,935 individuals registered for the National Housing Fund,
representing a 33.6 percent increase from 2018. Also, N4 trillion was
distributed under the Agricultural Credit Guarantee Scheme Fund in 2019, an
increase from N2.9 trillion in 2018. The increase in credit particularly
towards the agriculture sector will not only improve the living standard of
beneficiaries but also enhance development through an increase in economic
activities and trade; alongside building the resilience of the economy by
improving the balance of payment account. However, providing loan guarantees to
borrowers can considerably increase the contingent liability of the government
with implications on its fiscal performance. As such, a cost-benefit analysis
of these credit facility programmes and other available options to boost
economic activities is required in order to determine the best approach.
November 6, 2020
Nigeria Economic Update (Issue 42)
Related
Nigeria Economic Update (Issue 42)
The
NSE market indices recorded a bear market rally for the third consecutive week
in September. Specifically, All-share index and Market Capitalization increased
marginally by 0.31 percent to close at 28,335.40 points and N9.73 trillion
respectively on September 30, 2016. Major drivers of the rally include;
increased trade-volume of financial, agricultural and consumer-goods
securities. The continued rise in market indices may be connected to a
sustained investor confidence in the agricultural and financial sectors on the
account of the ongoing activities of the government and the CBN to stabilize
the sectors.
Nigeria Economic Update (Issue 26)
Power sector statistics indicates a huge decline in power generated in the week under review (June 23, 2017 to June 30, 2017). Power generated, attained a peak of 4,305 MW on June 23, 2017 but fell significantly by 33.1 percent to approximately average of 3,000 MW as at June 30, 2017. The huge decline is attributable to continued poor payment and inability of most GENCOs to pay for gas supply and a system collapse. Consequently, power sector lost huge prospective funds; and daily power supply reduced to 4.5 hours per day7. Going forward, improvement in energy supply is critical to domestic production, job creation, and diversification agenda of the government.