A few weeks ago, I stumbled on a report by the National Bureau of Statistics which revealed the credit allocation made by Nigerian banks to the country’s private sector. The findings of the report caused me to think and reflect on why the oil and gas sector receives most of the private sector credit while critical sectors like agriculture suffer.
I wrote about this for Stears Business: Here is an excerpt:“A recent report by the National Bureau of Statistics (NBS) revealed that at ₦3.58 trillion, Nigeria’s oil and gas sector received the highest allocation of private sector credit – 22% of the total pot. By comparison, second place was manufacturing at 14% while all other sectors received less than 10%. The agriculture sector which employs around half of working Nigerians and contributes around a third of the country’s GDP received only 3% of total bank credit. These numbers are quite startling for a sector so vital; one which the government views as our only hope in fact. Why then is oil and gas still the banks’ favourite? “
You can read the entire article here.