The Central Bank of Nigeria disclosed this in the personal
statement made by the Deputy Governor, Financial System Stability Directorate,
CBN, Aishah Ahmad, at the last Monetary Policy Committee meeting.
She said, “Key industry aggregates also continued their
year-on-year upward trajectory with total assets rising to N73.59tn in December
2022 from N59.24tn in December 2021, while total deposits rose to N45.50tn from
N38.42tn over the same period.
“Total credit also increased by N5.14tn between end December
2021 and end-December 2022 with significant growth in credit to manufacturing,
general commerce and oil & gas sectors. This impressive increase was
achieved amid continued decline in non-performing loans ratio from 4.90 per
cent in December 2021 to 4.20 per cent in December 2022.”
According to her, the financial system had provided
significant support for needed domestic economic resilience amid global shocks
and remained strong into 2023.
Data provided by Bank staff, she said, indicated stability
in broad soundness indicators and an unprecedented improvement in asset
quality, even as credit to the private sector continued to grow.
She noted that the capital adequacy as of December 2022 was
robust at 13.83 per cent, 383 basis points above the regulatory minimum of 10
per cent.
Industry liquidity was also strong at 44.10 per cent over
the same period and supported by significant cash reserve requirement buffers
available to provide liquidity backstops, should banks require it, she noted.
Ahmad said, “The sector also benefitted from ingenious
initiatives such as the naira redesign and revised cash withdrawal limit
policies, all expected to strengthen the banking channel of monetary policy
transmission.
“Furthermore, results of stress tests showed resilience of
banks’ solvency and liquidity ratios in response to potential severe
macroeconomic shocks.
“However, the bank must remain vigilant to proactively
manage probable macro risks to the financial system arising from spillover
effects of global headwinds and domestic vulnerabilities, in view of the
financial system’s strategic role in driving sustainable economic recovery.”
According to her, the economy had continued on a path of
positive growth for eight consecutive quarters, driven largely by support from
the Bank and the fiscal authority to output enhancing sectors.
Based on data from the National Bureau of Statistics, she
said, Real Gross Domestic Product grew by 2.25 per cent (year-on-year) in the
third quarter of 2022, compared with 3.54 per cent in the second quarter of
2022 and 4.03 per cent in the corresponding period of 2021.
Staff projections indicated that output growth recovery was
expected to continue reasonably into 2023, given the expected sustained
positive performance during the fourth quarter of 2022 and steady rebound in
economic activities, she said.
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