Mohammed Shosanya
The Chartered Institute of Bankers of Nigeria (CIBN) has identified growths in the nation’s banking sector.
Presenting the council’s report at the Institute’s 2022 Annual General Meeting (AGM) recently, the President/Chairman of the Council, Mr. Ken Opara maintained that the banking sector remains resilient as Nigeria continues to endure incessant, mutating and perilous socio-economic shocks.
According to him,some of the notable growth recorded in the sector in the year in view include,attraction of $1.47 billion as capital inflows in the first half of 2022; an increase of 10.8 per cent compared to $698.2 million received in the second half of 2021 and 46.5 per cent higher than the $1 billion inflows recorded in the corresponding period of 2021.
Acknowledging the contributions of the banking sector toward the country’s growing availability of financial services, commodities, and access, Opara said the evidence is clear in the increasing credit to the private sector which rose from N13.2 trillion in 2018 to N27.7 trillion as of September 2022.
He added: “Credit to the core real sector as measured by the credit to GDP at the end of 2018 to approximately 15% (As obtained from Central Bank of Nigeria 2022 Report). Opara says, “This shows the capacity of the sector to enhance inclusive and sustainable economic growth that creates jobs and improves the standard of living of the citizens”.
According to him, Electronic payment transactions in Nigeria rose to N387 trillion in 2022, hitting an all-time high as more Nigerians embrace cashless payment amid plans to mop up a high volume of physical cash in the country’s financial system.
He said,the volume of financial transactions performed electronically in Africa’s most populous nation surged to the highest in five years in 2022,while the NIBSS instant payment platform (NIP) shows that the volume of transactions rose by 618.1 per cent to 5.2 billion in 2022 from 729.2 million in 2018.
He also said,the total value of electronic transactions increased by 381.5 per cent from N80.4 trillion as at 2018 to N381.1 trillion in 2022.
According to Opara, the growths were recorded at the time the challenges faced by businesses in 2022 were unabated insecurity, multiple taxations, exorbitant interest rate, energy crisis, and the migration of young and talented youths to Europe, America, and Asia in search of greener pastures.
Opara said the CIBN recorded a 16.9 per cent increase in revenue to N2.06 billion in 2022 from N1.76 billion in 2021, with its net assets and net operating surplus increasing by 7.3 per cent and 4.9 per cent respectively, to N6.66 billion and N837.94 million in 2022.
He stated that the institute’s financial status has improved due to, among other things, efficient resource utilisation.
He said, “I am delighted to inform you that despite the macroeconomic headwinds in 2022, the Institute recorded a modest growth in its financial position.The improved performance recorded in the year under review was as a result of efficient utilisation of resources and the deliberate focus on revenue generation drive.
“While appreciating the management of the institute for their efforts, it is important to state that the institute will remain focused and committed to the implementation of our strategic plan.”
