Lagos accounts for 78.9% of bank loans by geographical distributions~NBS
By Samuel Bankole
Lagos, Nigeria’s economic nerve centre has continued to attract attention from the banking industry as the state dominated credits allocations from the financial sector in the second quarter of 2020 among it peers.
According to data from the National Bureau of Statistics (NBS), Lagos accounted for 78.94 percent of total credit by geographical distribution in the second quarter of the year.
NBS data showed that out of the N18.90 trillion credit distributed by State through the financial sector, Lagos alone obtained N14.92 trillion of the total.
On the reverse side, Yobe State recorded the least with N13.8 billion accounting for 0.07 percent of total credit granted by banks in the second quarter of 2020.
The NBS, however, cautioned that “credit per state may not necessarily reflect the level of economic activity in the state.
“For example, all the oil majors are operating outside Lagos but their credit is booked in Lagos. Similarly, Dangote Cement’s loan may have been booked in Lagos but their major activity is outside Lagos, as an example,” the NBS wrote in the report.
However, from other indicators, Lagos continued to dominate economic activities in the country as its economy represents the fifth biggest in the continent and generated the highest internal revenue among the 36 states of the federation.
Lagos is also landlord to the majority of the bank head offices and accounts for the largest number of bank branches compared with other states, the reason for the size of its economy.