Q1 Reports: Despite insecurity, Nigerian banks rake billions as profit

…As manufacturers, farmers shut operations

By Philemon Adedeji

Despite insecurity in Nigeria, Nigerian banks still maintained positive records by raking Billions of Naira as profits in the first quarter of 2022, the Nigerian NewsDirect investigation reveals.

This finding comes on the heels of a report that both farmers and manufacturing firms are closing up operations owing to the spate of insecurity in the country.

Taking a look at the results of leading Banks in Nigeria, the Unity Bank grew its profit before tax by 20 per cent to N869.265 million in first quarter Q1 2022 from N721.537 achieved in first quarter Q1 2021.

First Bank increased marginally by 73.7 per cent to N117.8 billion in Q1 2021 compared to N67.8 billion accounted in Q1 2020

Union Bank reported 17.9 per cent growth in profit to N42.9 billion in Q1 2022 from 36.4 billion recorded in Q1 2021.

Zenith Bank grew it profit in first quarter Q1 of 2022 to N191.5 billion from N157.3 billion generated in Q1 2021, reflecting a marginal difference of 23 per cent.

Guarantee Trust Holding Company recorded 15.5 per cent decline in profit to N93.1 billion in Q1 2021 from N109.7 billion in Q1 2020.

Wema Bank grew its profit before tax by 119 per cent to N3.3 billion in Q1 2022 compared to N1.5 billion achieved in Q1 2021, reflecting an increase of 119 per cent.

These positive results of Banks financial stance negate the prevailing circumstances that both farmers and manufacturing companies in the countries have been facing since the resurgence in insecurity across Nigeria.

The domestic operating environment, especially insecurity, increase in diesel price and others are taking a heavy toll on manufacturers outputs in the country.

On July 8, the Manufacturers Association of Nigeria (MAN), which is the umbrella body of those in the sector with over 3,000 manufacturers in the country, issued a press statement where the body clearly stated that the manufacturing sector of the Nigerian economy has been battered by numerous familiar challenges that have plummeted the number of industries in Nigeria and converted industrial hubs in many parts of the country to warehouses of imported goods and event centres.

Farmers, on the other hand, have been bearing the brunt of insecurity as testified by the Minister of Agriculture and Rural Development, Mahmood Abubakar, who said that attacks by terrorists were denying farmers access to their farms, especially in the North-West and North-Central. He however said the government was making efforts to address the problem.

“That is one of the reasons why we have an arrangement for security agents known as agro-rangers, who are providing some measures of security so that the farmers will be able to access their farms.

“Truly, if they cannot completely access farms all over the country, you will expect a drop in production, but right now we are doing everything possible to make sure production is maintained through that security provision.”

In another report, by a leading Newspaper in Nigeria (not this paper), findings revealed that insecurity especially in the North has prevented them from taking maximum advantage of the rainy season, which would have boosted their harvest and crash the price in the market.