Non-performing loans of Nigerian banks now N1.17tn –NBS

Non-performing loans of Nigerian banks now N1.17tn –NBS
Non-performing loans of Nigerian banks now N1.17tn –NBS

Africa-PressNigeria. The non-performing loans portfolio of Nigerian banks stood at N1.17 at the end of the third quarter, N42.4 billion or 3.5% lower than the N1.21 trillion reported for the second quarter, data obtained from the National Bureau of Statistics (NBS) website on Sunday showed.

Nigerian banks are in danger of recording higher non-performing loans and impaired credit facilities in 2021 as the coronavirus pandemic weakens the ability of borrowers to pay back consumer and commercial loans, a trend that could deteriorate the asset quality of lenders.

“Impaired loan ratios could head towards low double digits in some countries, particularly in Nigeria and Morocco,” credit ratings agency, Fitch said in its commentary on Nigerian banks earlier this month.

The transportation and storage sector of the economy posted the steepest rise in non-performing loans with a 26.87% or N9.95 billion increase from N37.04 billion in Q2 2020 to N46.99 billion in Q3 2020.

General commerce recorded the best improvement in non-performing loans, with a reduction of 12.79% or N21.95 billion in its non-performing loans value from N171.55 billion to N149.6 billion in between the two quarters.

Banks’ total credit to the private sector as of Q3 2020 stood at N19.87 trillion, the NBS said.

“Oil and gas and manufacturing sectors got credit allocation of N3.74tn and N3.03tn to record the highest credit allocation as at the period under review,” the statistics office said.

Lagos accounted for the highest number of borrowers from banks while Yobe State was responsible for the least number.

“Lagos beneficiaries recorded the highest credit by geographical distribution with N15.13tn, accounting for 77.74 per cent of the total credit by geographical distribution, while Yobe State recorded the least with N19.38bn, accounting for 0.09 per cent in Q3 2020,” the NBS said.



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