Non-performing Loans Reduced to N1.17 Trillion in Q3 2020

A series of policy adjustments implemented by the Central Bank of Nigeria have helped moderate Nigeria’s non-performing loan, according to the latest data from the National Bureau of Statistics (NBS).

The non-performing loan in the banking sector declined by N42.4 billion in the third quarter of 2020 to N1.17 trillion, down from N1.21 trillion posted in the second quarter of 2020.

Deposit Money Banks allocated a total of N19.87 trillion credit to the private sector in the third quarter of the year.

The report 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.”

In terms of beneficiaries, most of the beneficiaries reside in Lagos while Yobe beneficiaries were the least during the quarter under review.

“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 stated.

A further breakdown showed beneficiaries from Abia, Abuja, Adamawa and Akwa-Ibom borrowed N115.83 billion, N594.02 billion, N62.16 billion and N92.21 billion, respectively, while those from Anambra, Bauchi, Bayelsa and Benue borrowed N98.72 billion, N48.13 billion, N98.81 billion and N90.18 billion, respectively.

Beneficiaries from Borno, Cross River, Delta and Ebonyi borrowed N38.24 billion, N77.25 billion, N216.39 billion and N25.06 billion, respectively, while those from Edo, Ekiti, Enugu and Gombe borrowed N142.18 billion, N47.56 billion, N53.37 billion and N63.01 billion, respectively.