The non-performing loans portfolio of banks in Nigeria added up to N1.2 trillion at the end of June, figures obtained from the Central Bank of Nigeria (CBN) on Monday showed.
Non-performing loans constituted 6.4 per cent of banks’ exposure to the economy, which totalled N18.9 trillion in the first quarter of this year.
The statistics implied that lenders had scaled down the size of bad debts they carried in recent years through write-offs, improved loan recovery and disposals by lending institutions.
Lenders non-performing loans in the first quarter of 2019 came to N1.67 trillion compared to the N1.79 trillion reported in the same period of 2018, the statistics office said in its report on selected banking data.
Read also: CBN’s disbursement to commercial farmers hits N635bn
“The committee noted the decrease in NPLs ratio to 6.4 per cent at end-June 2020 from 9.4 per cent in the corresponding period of 2019, on account of increased recoveries, write-offs and disposals.
“The committee expressed confidence in the stability of the banking system and urged the bank to monitor the compliance of Deposit Money Banks to its prudential and regulatory measures to sustain the soundness and safety of the banking industry,” said Godwin Emefiele, the apex bank chief at last week’s Monetary Policy Committee meeting of the bank.
The aggregate domestic credit (net), according to him, swelled by 5.16 per cent in June relative to 7.47 per cent in May.
He also said the committee applauded the CBN Loan-to-Deposit Ratio initiative for resolving the credit conundrum given that gross credit leapt by N3.3 trillion from N15.6 trillion by May 2019 to N18.90 by June this year.
“These credits were largely recorded in manufacturing, consumer credit, general commerce, and information and communication and agriculture, which are productive sectors of the economy.”
Opinions