The CBN says that just 50 customers owe 33.4 per cent of the total loans given out by banks during this priod of recession
The apex bank says the oil and gas sector got the most of the amount while manufacturing sector and government followed
The Central Bank of Nigeria (CBN) has said that amid the present recession, 50 customers presently owe banks N5.23trn.
Punch reports that CBN’s Financial System Stability report revealed this on Saturday, October 8 on the apex bank’s official website.
“The total exposure to the top 50 obligors stood at N5.23tn (33.4 per cent) of total industry credit exposure of N15.68tn,” the CBN said in the report.
It continued: “Credit exposure to the dominant sectors is as follows: 28.77 per cent to oil and gas sector; 12.95 per cent to manufacturing; 8.84 per cent to governments; and 8.69 per cent to general commerce.
“Credit risk is expected to trend higher into the second half of 2016 owing to increased loan impairments resulting from the depreciation of the naira, inability of obligors to service foreign currency-denominated loans, as well as bank exposures to the oil and gas sector.”
It added: “At end-June 2016, loans to the oil and gas sector constituted 28.77 per cent of the gross loan portfolio of the banking system as credit to that sector grew to N4.511tn, compared with N3.307tn at end-December 2015. Loans to state governments rose to N1,386.61bn from N1,053.97bn at end-December 2015, as declining revenues continued to constrain payment of salary by some states, funding of key services and execution of developmental projects.
“This was despite the CBN’s N338bn special intervention scheme designed to refinance states’ debts, as well as a debt restructuring programme introduced by the Debt Management Office, which enabled states to restructure their commercial loans in the preceding period. However, to prevent further financial crisis, a fresh facility of N90bn with a nine per cent interest rate was made available to the states.”
Meanwhile, two soldiers allegedly involved in the abduction of Margaret Emefiele, wife of the Governor of Central Bank of Nigeria, Godwin Emefiele have been arrested.
The soldiers, Musa Maidabara, a corporal and Edwin George, a lance corporal attached to the 322 Artillery Regiment and 371 Artillery Regiment respectively in Maiduguri were arrested with about ₦15 million with them and other material possessions.
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