Nigerian bank deposits rise by 19% to N43tn in 2022

By Olivia Nnorom

Nigerian banks have recorded a N6.92 trillion rise in deposit from N36.13tn as of the end of October 2021 to N43.05tn in the corresponding period of 2022.

This was disclosed in the personal statements of members of the Central Bank of Nigeria (CBN) Monetary Policy Committee.

According to Aishah Ahmad, the deputy governor, Financial System Stability Directorate, CBN, “Notably, total assets rose to N69.67tn in October 2022 from N57.3tn in October 2021, while total deposits rose to N43.05tn from N36.13tn over the same period.

Furthermore, Ahmad said that the total credit  increased by N5.32 trillion to N28.81 trillion between end-October 2021 and end-October 2022 with significant growth in credit to manufacturing, general commerce, and oil & gas sectors.

She added that the continued credit expansion particularly to output-enhancing sectors is expected to further support economic activities.

In view of lingering macroeconomic risk, the CBN deputy governor said that sustained regulatory vigilance is required to mitigate any potential crystallisation of credit risk in the financial system.

Ahmad attributed the rise in average lending rates between June and October 2022 to the tight monetary policy stance of the MPC, which according to her,requires vigilance by the banks to forestall defaults and preserve asset quality.

On his part, Robert  Asogwa, a member of the MPC, observed that the domestic financial sector was still resilient in November except for observed volatilities in the stock market.

He said the indicators of the banking sector are robust, similar to the position at the last MPC meeting, with non-performing loans ratio declining further from 4.9 per cent to 4.8 per cent in October 2022 and with further increases in total assets.

“Of particular interest is the addition of above N1tn in total industry deposits between September and October 2022,” Asogwa said.