Total assets of Nigerian banks increased by N8.25 trillion to N59.24 trillion at the end of 2021. As of the end of 2020, the total assets of the country’s lenders had reached 50.99 trillion.
The Central Bank of Nigeria disclosed this in the personal statements of Monetary Policy Committee members.
According to the CBN, Kingsley Obiora, a member of the MPC, stated that “the banking system maintained its soundness, safety, and resilience amid economic recovery.”
“The banking industry’s total asset increased from N50.99tn at the end of December 2020 to N59.24tn, representing a 16.18% increase, driven by balances with CBN/banks, OMO bills, and credits.”
This comes as another MPC member, Robert Asogwa, stated that “the banking industry asset base increased by 16.17 percent from 50.9 trillion naira at the end of 2020 to 59.2 trillion naira at the end of 2021.”
Obiora, on the other hand, stated that the banking system has maintained its soundness, safety, and resilience despite the economic recovery.
Meanwhile, the Central Bank of Nigeria (CBN) stated that banks had continued to support the economy through various interventions in critical sectors such as infrastructure.
For example, as part of its effort to support infrastructure development, the bank disbursed N274.33 billion to the sector through the Nigeria Bulk Electricity Trading Payment Assurance Facility.
A further N20.58 billion was made available to distribution companies as part of the Nigeria Electricity Market Stabilisation Facility – Phase 2.
However, given Africa’s infrastructure financing needs of $170 billion per year and a gap of around $100 billion per year, according to the African Development Bank, Nigeria must attract private capital to supplement the country’s limited fiscal space.
“This is where initiatives like the formation of InfraCorp become necessary because it will attract funds from around the world, providing the foundation for infrastructural development, increased productivity, double-digit growth, and long-term economic development,” it added.