The Nigeria Bureau Of Statistics (NBS) has revealed that Nigerian banks’ non-performing loans stood at N1.2tn according to June 2020 ending report from the Central Bank of Nigeria.
This figure is about 6.4 percent of the entire N18.9tn credit of Nigerian banks to the economy under the period.
The report indicated that banks are gradually reducing their bad debts through enhanced recoveries, write-offs and disposals. The report shows that, nonperforming loans in March 2019 and end of 2018 stood at N1.67tn and N1.79tn respectively.
Suffice it to say that, the Governor of the Central Bank Of Nigeria, Godwin Emefiele at the recent end of the Monetary Policy Committee Meeting affirmed that the non-performing loans had decreased in the sector.
According to the CBN governor “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 safetThey of the banking industry.”
He revealed that the aggregate domestic credit (net) grew by 5.16 per cent in June 2020 compared with 7.47 per cent in May 2020.
Emefiele also said the total gross credit increased by N3.33tn from N15.56tn at end-May 2019 to N18.90tn at end-June 2020.
As he puts it, “These credits were largely recorded in manufacturing, consumer credit, general commerce, and information and communication and agriculture, which are productive sectors of the economy”.
In his reaction to the foregoing, Mr Ahmed Kuru, Managing Director/Chief Executive Officer of Asset Management Corporation of Nigeria, (AMCON), said the corporation had developed a new receiver framework for its recovery agents.
As part of the corporation’s efforts to recover the outstanding N5tn debt, he said the corporation had disengaged some of its receivers for non-performance.
Kuru called on all AMCON partners, especially in the receivership business, not to allow a few individuals to escape with the commonwealth of all Nigerian
