Business
Banks’ NPLs reach 10-month high in Q3
FELIX OLOYEDE
Godwin Emefiele, CBN Governor
Non-Performing Loans (NPLs) in the Nigerian banking industry hit 10-month in September, latest data from the the Nigeria Deposit Insurance Corporation (NDIC) has shown.
The report quoted by CNBC states that NPLs in the Nigerian banking sector reached N2.42 trillion at the end of Q3 2017, which is 10-month record high.
Muyiwa Oni, banking analyst, Stanbic IBTC told CNBC that 10 percent of the country’s banking loans are in the upstream oil and gas and 80 per cent of restructured loans are also in the same sector.
The banking sector has been struggling with ballooning NPLs due to significant drop in crude oil prices, which caused the Nigerian oil-dependent economy to plummet to a 16 month recession, which it exited in Q2.
Oni explained with the rebounding of oil prices, which traded $62.19 as at 9.10 am on Tuesday, there is hope that the risk assets of banks will continue to improve.
The International Monetary Fund (IMF) had warned that high NPLs pose danger to Nigeria’s banking industry.
