On the backdrop of demonstrating resilience, the Central Bank of Nigeria (CBN) has disclosed that the banking sector assets increased by 12.7 per cent to N17.98 trillion year-on-year.
This was disclosed by Dr. Bandele Amoo, a member of the CBN Monetary Policy Committee (MPC), in his personal statement following the committee’s January meeting.
He said in a statement that, “Deposits surged by N11.05 trillion, while credit grew by N0.59 trillion over the same period. Liquidity also remained strong, as reflected by a liquid assets-to-third-party funds ratio of 50.6 per cent,” he stated.
He pointed to a marginal decline in the Capital Adequacy Ratio (CAR), which slipped to 14.8 per cent in January from 15.2 per cent in December 2024 a signal of rising risk-weighted exposures that could constrain future credit expansion.
He said: “The Nigerian Financial system continues to be resilient and strong. Banking industry assets grew by12.68 per cent to N17.98 trillion in January 2025. Industry credit and deposits increased by N0.59 trillion and N11.05 trillion, respectively as of January 2025 compared with their levels in the preceding year. Bank liquidity remained adequate in January 2025, reflected by a high ratio of liquid assets to third-party funds at 50.6 per cent.
“The Capital Adequacy Ratio (CAR) declined to 14.8 per cent in January 2025 from 15.2 per cent in December 2024, thereby exposing banks to more risk-weighted assets and under supporting credit growth, even as interest margin to total operating income rose by 8 per cent. Meanwhile, non-performing loans (NPL), as a proxy of credit risk, stood at 4.2 per cent in January 2025.”
He added that the financial soundness indicators (FSI) trend for other financial institutions also showed strong safety levels. Their savings and domiciliary deposits fell by N 0.17 trillion 0.80 per cent and N 0.96 trillion 2.40 per cent respectively, in January 2025.
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