Non-performing loans in Nigeria hit N1.21tn

The total non-performing loans in the banking sector in Nigeria hit N1.21tn in February 2022 the Central Bank has revealed.

The CBN stated in reports obtained from the Monetary Policy Committee that the total credit in the sector rose to N25.25tn as of the end of February 2022 from N21.13tn as of the end of February 2021.

It stated that the non-performing loans reflected the case-by-case review of regulatory forbearance, effects of the Global Standing Instruction policy, and sound industry risk management practices.

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A member of the MPC, Kingsley Obiora, said the banking system maintained its resilience amid economic recovery, adding that the non-performing loans ratio declined further to 4.8 per cent in February 2022, from 4.94 per cent in December 2021.

Also, another member of the committee, Robert Asogwa, said, the financial sector remained strong, similar to the position at the last MPC meeting especially looking at the banking and capital market developments.

He said the banking sector appeared sound and resilient with a considerably high Capital Adequacy Ratio and Liquidity Ratio in February 2022, in line with prudential requirements.

With a persistently lowering non-performing loan ratio since 2021 despite the shocks caused by the COVID-19 pandemic, he said the asset quality of the banking system was now one of the strongest in Sub-Saharan Africa.

CBN/Punch/Hauwa Abu