Brisk Talks: Private Sector Deposits in Charts

Abiola Afolabi

Private sector deposit are important in any country but when the economy begins to shrink significantly, `monetary authority’s priority shift to getting consumer’s spending. When inflation however crips into the economy, monetary authorities focus on drawing private savings by raising rates and making savings attractive. In `Nigeria- a country with a working population of over 100 million working age population, `private sector deposit has jumped significantly to N5.2tn at the end of fiscal year 2015 from`N2.7tn in 2014- showing clearly that govenrment priorities over the years is to drag down inflation.

A quick trend showing growth in total amount held in current accounts ( Demand Deposits) in `Nigerian Banks

A quick trend showing growth in total amount held in Fixed deposit ( time deposit) in Nigerian Banks

2009 was an exeptional year- as savings dropped from 2008 level under strain from the global financial crisis that cascade into a systemic risk that threaten and lead to a financial crisis in Nigeria including the forced acquisation and management makeover in 6 big commercial banks.

A quick chart showing growth in total amount held in Nigerian banks in savings accounts.

A quick chart showing growth in amount held in domiciary (foreign currency) in Nigerian deposit money banks.