…as banks reduce lending to economy by N292bn in Q2- NBS
By Ayobami Adedinni
The National Bureau of Statistics (NBS) has disclosed that Electronic Payment Channels in the Nigerian Banking Sector hits N19.78 trillion in Q2 of 2017.
The bureau in its report entitled: “Selected Banking Sector Data” also disclosed that commercial banks reduced their lending to the economy by N292 billion in the second quarter (Q2) of 2017.
According to NBS report, the volume and value of electronic payment transactions stood at 327,366,042 and N19.78 trillion at the end of Q2 2017.
Automated Teller Machine (ATM) transactions dominated the volume of transactions recorded. 187, 805, 431 volume of ATM transactions valued at N1.54 trillion were recorded in Q2 2017 while Nigeria Interbank Settlement System (NIBSS) Instant Pay (NIP) transactions came first in terms of value with N13.36 trillion.
The report also shows that Nigerians withdrew N1.5 trillion through ATMs in the first quarter of 2017, slightly down from N1.54 trillion at the end of fourth quarter of 2016.
The report by NBS said, “187, 805,431 Transactions in Q2 – ATM Payment Option had the highest Volume of Transaction and the 3rd by Value. N13.36 trillion Transaction Value in Q2 – NIBSS Instant Payment Option had the highest value of transaction and 2nd by Volume.”
Also the volume and value of Point of Sales (PoS) transactions increased to 32 million and N324 billion from 26.6 million and N286 billion in Q1 2017.
While the volume and value of mobile payment transactions stood at 11 million and N295 billion in Q2 2017 from 12.6 million and N261 billion in Q1 2017.
Similarly, the volume and value of web (internet) transactions increased to 5.96 million and N37 billion in Q2 2017 from 5.52 million and N47 billion in Q1 2017.
The report shows that commercial banks lending to 17 sectors of the economy fell to N15.7 trillion in Q2 of 2017 from N16 trillion in first quarter (Q1) 2017, indicating a drop of N292 billion or 1.8 per cent.
The 17 sectors according to NBS include Agriculture, Mining & Quarrying, Manufacturing, Oil & Gas, and Power & Energy, among others.
However, when compared to lending in the second quarter of 2016, commercial banks’ lending to the sectors increased by 0.57 per cent to N15.5 trillion.
The report by NBS also showed that oil & gas sector got the largest credit of about N3.5 trillion, followed by the manufacturing sector with N2.22 trillion while power & energy dropped by 1.3 per cent to N466billion in Q2 2017.
In terms of credit to private sector, a total of N15.71 trillon worth of credit was allocated by the banks in Q2 2017. Oil & Gas and Manufacturing sectors got credit allocation of N3.53trillion and N2.22 trillion to record the highest credit allocation in the period under review.