Oil & Gas Industry Leads Bank Credit Allocation for 2021 – NBS

0

Banking sector data from the October 2022 report from the National Bureau of Statistics (NBS) indicates that the the oil and gas industry has been one of the major credit allotments for private sector companies in 2021.

Total credit allocated to the private sector in Q1 2021 amounts to N62.28 trillion, For Q2/2021, Total credit allocation increased by 5.64% to N65.79 trillion.

Q3 2021 credit allocations to the private sector increased by 2.33%, posting a total of N67.33 trillion.

Total credit allocation for the fourth quarter of 2021 increased by 6.52%, posting a total of N71.71 billion. The oil and gas industry led every quarter with the highest bank credit allocation, overtaking the manufacturing and general services sectors.

  • In the report, credit allocations for the oil and gas industry were at 11.97 trillion naira (19.22%), the highest compared to the manufacturing sector at 9.82 trillion naira (15.77%) and General Services Industry at N5.55 trillion (8.92%).

Bank credit refers to the amount of credit available to a business or individual from a banking institution in the form of loans. Bank credit is therefore the total amount of money that a person or business can borrow from a bank or other financial institution.

The news continues after this announcement




Breakdown by quarter

In the BNS data, it was indicated that for Q1/2021the oil and gas industry has attracted N11,967,670.27, while the power and energy industry attracted N1,358,850.52.

  • Meanwhile, for the first quarter of 2021, the oil and gas services sector attracted N3,820,783.94, while the electricity and energy services sector recorded N981,189.94.
  • In Q2/2021the oil and gas industry attracted N12,335,594.62, while the electricity and power industry attracted N1,483,310.17. The oil and gas services sector recorded N4,050. N303.01, while the electricity and energy services sector recorded N1,101,896.91.
  • In Q3/2021the oil and gas industry attracted N12,316,702.97, and the electricity and power industry attracted N1,487,046.10. The oil and gas services sector posted N3,958,846 .89 N and the electricity and energy services sector registered N 1,021,668.77.

In Q4/2021the oil and gas industry attracted N12,480,988.03, and the electricity and power industry attracted N1,533,934.92. The oil and gas services sector posted N4,229,460 .07 N and the electricity and energy services sector registered N 1,034,088.50.

The news continues after this announcement



Optical

Financing is an important aspect of industry growth in the oil and gas and power and energy sectors. In Nigeria, several energy projects are being developed to increase access to energy for all, and sustainable financing is needed to execute these projects.

  • Importantly, oil and gas will remain at the heart of the global energy mix for the foreseeable future. Thus, companies will have to develop proactive and transparent sustainable development strategies that maintain their license to operate in their traditional activity.
  • In its 2020 Fuel Report, the International Energy Agency (IEA) notes that oil and gas activity is a necessary part of the future due to growing demand for energy.
  • The report says the prospect of growing demand for energy services is driven by a growing global population, some of whom remain without access to modern energy, and a growing global economy.

“The recognition that oil and natural gas play a vital role in today’s energy and economic systems, and that affordable and reliable supplies of liquids and gases (of various types) are necessary elements of a vision for the future,” the report said.

What you should know

  • As of August 2022, Nairametrics reported that Nigeria’s leading oil and gas companies achieved revenue of N625.075 billion in the half year of 2022, exceeding their profits in the corresponding period of 2021 by N444.254 billion.
  • Nairametrics too reported that due to the performance of the oil and gas business, credit rating agency Agusto & Co noted that: “The growing demand for petroleum products is supported by continued urbanization in addition to the expansion of the domestic and international airline industry.

Share.

About Author

Comments are closed.