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Banking System Credits Up By 4.6%

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The 5.5 per cent increase in claims on the private sector drove the aggregate banking system’s credit (net) to the domestic economy by 4.6 per cent in July 2009, the Central Bank of Nigeria (CBN) has disclosed.

Claims on the private sector include gross credit from the financial system to individuals, enterprises and non-financial public entities not included under net domestic credit, as well as  financial institutions not  included elsewhere.

Before the recent CBN cleansing exercise in the banking sector, banks credit to the economy has been the major driver of recorded growth in other sectors of the economy. This is an indication that other sectors’ activities may have been boosted in relative terms by 4.6 per cent increase in banks’ credit to the economy.

This recorded credit level is compared to the increase of 3.6 per cent in the preceding month.

At N3.088 billion, the banking system’s credit (net) to the Federal Government declined by 7.2 per cent, compared to the fall of 4.9 per cent in June, 2009. The fall was attributed wholly to the 11.1 per cent decline in deposit money banks’ (DMBs) holdings of government securities during the month.

The banking system’s credit to the private sector rose by 5.5 per cent to 9.026 billion, compared to the increase of 0.6 per cent in June 2009. This reflected largely the 4.6 per cent increase in DMBs claim on other private sectors. At N7.554 billion, foreign assets (net) of the banking systems declined by 1.2 per cent, as against the increase of 0.1 per cent in the preceding month. The development was attributed to the fall in both CBN and DMBs’ holding.

Meanwhile, the recorded contraction in broad money (M2) is a reflection of the respective decline of 1.2 and 8.5 per cent in net foreign assets and other assets (net) of the banking system. Barely a month to the end of year 2009, the apex bank noted in its July report that over the level at end – December 2008, M2 decline by 3 per cent.

With the expectation  of more developments on the sector by the CBN as the year draws to a close, monetary and credit developments in the economy have been trailed with mixed developments in July.

For instance, provisional data by the CBN indicated a decline in monetary aggregates  at the end July 2009, while broad money (M2) fell by 2.1 per cent to N8.889 billion, compared to the 4.1 per cent decline in June 2009. Similarly, narrow money (M1) declined by 4 per cent to N4.303 billion, as against the incase of 3.8 per cent in the preceding month.

The CBN revealed that quashi money fell by 0.2 per cent to N4.585 billion, in contrast to the increase of 4.4 per cent in June 2009. The development reflected the decline in all the components, namely:   time, savings and foreign currency deposits of the DMBs.

Other assets (net) of the banking system also fell by 8.5 per cent to N4.602 billion, compared to the decline of 3.4 per cent in the preceding month. The fall was attributed to the decline in unclassified assets of both the CBN and the DMBs.

At N1,008 billion, currency in circulation increased by 0.2 per cent in July 2009, over the level in the  preceding month. The rise was due to the 2.7 per cent increase in currency outside the banks. Monetary aggregates contracted further in July 2009, while banks’ deposit and lending rates indicates a general increase. The value of money market assets increased, largely on account of the rise in commercial papers (cps).

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NPA Assures On Staff Welfare 

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The Managing Director, Nigerian Ports Authority (NPA), Dr. Abubakar Dantsoho, has said the management will continue to accompany its port infrastructure  and equipment  modernization drive  with the development of the welfare of its personnel.
Dantsoho made the disclosure recently while responding to the commendation by the Maritime Workers Union (MWUN) and the senior Staff Association of Statutory Corporations and Government-Owned Companies (SSASGOC) on the  clearing  of the age-long problem of employee stagnation, when the union paid him a courtesy visit at the Authority’s headquarters in Lagos.
A Statement by NPA’s General Manager Corporate & Strategic Communications, Mr. Ikechukwu Onyemekara, quoted Dantsoho as saying,  “our Port infrastructure and equipment modernization drive will go hand-in-hand with continuous staff welfare improvement”.
The NPA MD disclosed that human capital development constitutes the key strategy for creating and sustaining superior performance under his watch, adding that “talent development constitutes a critical success factor for the actualization of the big hairy audacious goals we have set for ourselves especially in the area of Port competitiveness.
“The only way we can meet and indeed exceed stakeholders’ expectations is to deepen the competencies of our human resources assets and boosting their morale.”
Speaking further, Dantsoho commended the Honourable Minister of Marine & Blue Economy, Adegboyega Oyetola, for approving the strategic proposal of the Dantsoho-led Management team that solved the over a decade-long problem of lack of promotion that had fuelled industrial disharmony.
“I must specially appreciate our amiable Minister for graciously approving the multi-pronged stratagem we deployed that cleared all outstanding cases of employee stagnation by conducting examinations in one fell swoop and instituted timelines to forestall a recurrence of such anomaly”, he sad.
Speaking on behalf of the joint maritime labour unions, the President  of Senior Staff Association of Statutory Corporations & Government-Owned Companies (SSASCGOC), Comrade Bodunde stated, “In addition to clearance of the backlog of stagnated promotions, we also wish to express our appreciation for the increase in productivity bonuses, provision of end-of-year welfare packages for staff, and the revision of the Financial Guide to the Condition of Service, which now addresses our members’ concerns about inflationary pressures.”
Nkpemenyie Mcdominic, Lagos
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ANLCA Chieftain Emerges FELCBA’s VP

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National Secretary of the Association of Nigerian Licensed Customs Agents (ANLCA), Elder Olumide Fakanlu, has been elected Vice President of the Federation of ECOWAS Licensed Customs Brokers Association (FELCBA).
The election took place during the FELCBA Congress, held from Tuesday, June 17th to Thursday, June 19th, 2025, in Freetown, Sierra Leone.
Fakanlu’s emergence as Vice President marks a significant achievement for Nigeria within the regional customs brokerage community.
Apart from Fakanlu, Secretary of the Seme Chapter of ANLCA, Austin Nwosu, was also elected, securing the role of Secretary of Relations with Institutions.
The Nigerian delegation played an active role in the congress, with Michael Ebeatu nominated as a member of the electoral officer team, ensuring a fair and transparent election process.
The three-day congress concluded with delegates undertaking a visit to the Sierra Leone Port, offering insights into the host nation’s maritime operations, followed by a recreational trip to the Tokeh Beach.
The newly elected executives are expected to lead FELCBA in its efforts to harmonize customs brokerage practices, promote trade facilitation, and advocate for the interests of licensed customs brokers across the ECOWAS sub-region.
Nkpemenyie Mcdominic, Lagos
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NSC, Police Boost Partnership On Port Enforcement 

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In a bid to enhance more enforcement in the nation’s Port, the Nigerian Shippers’ Council (NSC) has reaffirmed its commitment to stronger inter-agency collaboration with the Nigeria Police Force (NPF).
The Council said the collaboration is aimed at enhancing stronger enforcement, compliance and improve operational efficiency across Nigeria’s ports.
Executive Secretary/Chief Executive Officer of  NSC, Dr. Pius Akutah, made this known during a visit to the  Inspector-General of Police, Dr. Kayode Adeolu Egbetokun, at the Force Headquarters, Abuja.
The visit, which he said, focused on strengthening institutional synergy, comes in the wake of growing responsibilities for the NSC under the newly created Ministry of Marine and Blue Economy.
Akutah emphasized the critical role of security agencies in supporting port operations and ensuring regulatory compliance.
He called for the posting of police officers to assist the Council’s monitoring and enforcement teams at key port locations including Lagos, Warri, Onne, Port Harcourt, and Calabar.
“The posting will complement the activities of our revived task teams and enhance our ability to enforce standards across the maritime logistics chain”, he said.
Earlier, the Inspector-General of Police, Dr. Egbetokun, assured the Council of the Force’s readiness to continue supporting the growth of the maritime sector.
The IGP acknowledged that compliance enforcement is essential to the successful implementation of Nigeria’s Blue Economy objectives.
“The NSC and NPF are expected to deepen collaboration in the months ahead, with a shared focus on building a secure, efficient, and competitive port environment”, to the IGP emphasized.
Chinedu Wosu
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