- Banking Sector: Non-Performing Loans Drop Slightly to N1.67tn in Q1 2019
Non-performing loans in the Nigerian banking sector dropped slightly to N1.676 trillion in the first quarter of the year, the data released by the National Bureau of Statistics (NBS) has shown.
The report showed non-performing loans moderated from N1.792 trillion recorded in the final quarter of 2018 to N1.676 trillion in Q1, 2019. While total loans and loans after specific provisions were N15.353 trillion and N13.562 trillion, respectively.
The total loan in the banking sector stood at N15.480 trillion as of the end of March 2019. While loans after specific provisions stood at N13.739 trillion.
According to NBS data, non-performing loans represent 10.83 percent of the total loans, while non-performing loans to total loans after specific provisions was 12.2 percent.
Mr Ahmed Kuru, the Managing Director/Chief Executive Officer, Asset Management Corporation of Nigeria, expressed concerns over the huge toxic loans in the banking sector.
He said Nigerian authorities need to revisit the failed Bank Act so that bank operators would be made to account for their actions.
He also asked banks to strengthen their risk management strategy to curb negative growth in the sector.
Kuru stated that “given the huge resources that were available to financial institutions and the pivotal role they played to the development of the economy, it became mandatory for financial institutions to take the issues of risk management seriously to prevent what happened during the global financial crisis.”