Banks Have Given Manufacturers 2 Trillion Naira Loan In One Year
Companies engaged in any form of manufacturing have received no less than 2.01 trillion-naira loans from money deposit banks between July 2017 and June 2018.
This is according to an analysis of the banking sector credit report by the National Bureau of Statistics, NBS.
But this isn’t entirely great news.
This is because the report showed that the credit from banks to manufacturers actually reduced by 249 billion naira, from 2.26 trillion naira recorded the previous year.
A further analysis of the report indicated that the credit initially dropped from 2.26 trillion naira as of the end of the third quarter in 2017 to 2.17 trillion naira in the fourth quarter of 2017.
Between the fourth quarter of 2017 and the first quarter of 2018, the report showed that credit to manufacturers further declined by 100 billion naira from 2.17 trillion naira to 2.07 trillion naira.
The decline continued in the second quarter of this year with credit dropping further from 2.07 trillion naira as at the end of March to 2.01 trillion naira.
The decline in credit to manufacturers may not be in line with the Federal Government’s objective for the sector as contained in its Economic Recovery and Growth Plan.
The plan stipulated that the government would pursue manufacturing promotion policies that would enable the sector to record an average annual growth rate of 8.48% between 2018 and 2020.
This is expected to rise from -5.8% in 2017 to 10.6% by 2020.
The ERGP was expected to build on the Nigeria Industrial Revolution Plan, to address the key challenges in manufacturing.
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