Top 10 Nigerian Sectors Receiving the Most Bank Loans as of March 2024

Bank lending to the Nigerian economy has seen an increase, more than doubling from last year, reaching approximately N53.2 trillion by the end of the first quarter of 2024.

 This growth represents a 76% jump from N30.3 trillion in the same period in 2023 and a 20% increase from N44.5 trillion at the end of 2023, according to the latest data from the Central Bank of Nigeria (CBN). 

This data provides a detailed look into how the banking sector is distributing loans across different economic sectors.

Despite these increases, Nigeria still maintains a relatively low credit to Gross Domestic Product (GDP) ratio of 22%, which is much lower compared to South Africa’s 70%.

During the first three months of 2024, sectors across the board took on approximately N8.7 trillion in loans from banks.

Here are the top 10 sectors that received the most bank credit as of March 2024:

10. Information & Communication  

The Information & Communication sector received N1.67 trillion, up from N1.28 trillion in March 2023, marking a 30.47% increase. This sector, encompassing telecommunications, IT services, and broadcasting, is pivotal for digital connectivity and technological progress in Nigeria.

Although it grew by 6.23% in the first quarter, this was a slight drop from 6.93% growth in the last quarter of 2023. It’s the second-largest contributor to the country’s GDP, adding 17.89%.

9. Construction  

The Construction sector saw its bank credit rise to N1.83 trillion from N1.16 trillion in March 2023, a 57.76% increase. This sector is essential for building infrastructure such as roads and buildings, which are key to urbanization and economic growth.

Despite this, it experienced a slight contraction of 0.29% year-on-year, a stark contrast to the 37.7% growth seen in the first quarter of 2023.

8. Agriculture

A critical sector for Nigeria’s food security and rural development, Agriculture secured N2.58 trillion in bank credit, up 36.51% from N1.89 trillion in March 2023. The sector, which includes farming, livestock, and fisheries, contributed 21.07% to the GDP, with crop production making up 19.24% of this figure.

It grew by 0.18% year-on-year, showing a slight increase from the previous year but a decrease from last quarter’s growth of 2.10%.

7. Government 

Bank credit to the Government sector slightly decreased by 0.77%, totalling N2.58 trillion, down from N2.60 trillion in March 2023. This funding supports various governmental activities, including public administration and infrastructure projects.

6. Finance, Insurance, and Capital Market

This sector, which includes banks, insurance companies, and investment firms, received N3.41 trillion in bank credit, up 29.17% from N2.64 trillion in March 2023. It’s vital for maintaining financial stability and fostering economic growth, with its contribution to the GDP increasing to 6.81%, reflecting a year-on-year growth of 31.24%.

5. Trade/General Commerce 

Trade and General Commerce received N3.80 trillion, reflecting a 63.09% increase from N2.33 trillion in March 2023. This sector, which involves wholesale and retail trade, is crucial for distributing goods and services throughout Nigeria. It contributed 15.70% to the GDP, slightly lower than the previous year.

4. Oil & Gas Services 

The downstream sector of Oil & Gas Services received N3.88 trillion, a substantial 97.96% increase from N1.96 trillion in March 2023. This sector includes activities related to refining and distributing oil and gas products to consumers.

3. Manufacturing

The Manufacturing sector, which drives industrialisation and economic diversification, received N8.70 trillion, up 53.71% from N5.66 trillion in March 2023. It contributed 9.98% to the GDP, showing slight growth during the quarter.

2. General

The General sector, which encompasses various unspecified activities, saw a dramatic increase in bank credit to N8.75 trillion from N2.79 trillion in March 2023, a 213.98% rise. This indicates a diverse range of lending across multiple sub-sectors.

1. Oil & Gas 

Leading the chart, the Oil & Gas sector received the highest bank credit at N10.99 trillion, up from N4.88 trillion in March 2023, marking a 125.41% increase. As a cornerstone of Nigeria’s economy, this sector includes activities related to the exploration and production of oil and natural gas, contributing to the nation’s revenue and foreign exchange.