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 32)
Available data from the National Bureau of Statistics indicates a decline in oil and other petroleum production between 2015 and 2016. Crude oil production fell by 16 percent, from 777.5 million barrels in 2015 to 656.8 million barrels in 2016. This is also indicative of the number of exploratory rig count that fell from 15 rigs to 8 rigs in 2016. Similarly, Gas production declined by 10 percent to 2,711 million one thousand standard cubic feet (mscf) in 2016. The significant decline in crude oil and petroleum production, brings to perspective the extent of the damage caused on production pipelines by militants in the Niger Delta region in 2016. It is therefore important to invest national resources in maintaining domestic peace and security, especially in resource-rich regions of the country.