1. Lagos State gets 50% of deposits but 78% of credits
2. FCT Abuja gets 13% of deposits but only 3% of credits
3. Rivers State gets 5% of deposits and 5% of credits
Lack of credit hampers growth of Small and Medium Scale Enterprises SME especially to small scale farmers.
Interventions by the CBN to boost single digit credit to farmers and SMEs should also consider the geographical imbalance of available private sector credit. This can be addressing by subsidizing the higher risk premiums charged by Commercial banks when lending to certain regions.
(Credit: Nigerian Bureau of Statistics)
