The Central Bank of Nigeria (CBN) has announced that 17 banks have requested to restructure over 32,000 loans for individuals and businesses negatively impacted by the Covid-19 pandemic.
This was disclosed by the CBN deputy governor Aishah Ahmed in her Monetary Policy Committee (MPC) notes. According to her the figures of the loan to be restructured stands at 32.94 percent of the total industry loan portfolio.
The CBN Deputy Governor noted that “As at end-May 2020, staff reports indicate that 17 banks submitted requests to restructure over 32 thousand loans for individuals and businesses impacted by the pandemic, representing 32.94 percent of the total industry loan portfolio, with the manufacturing and general commerce sectors constituting the bulk of the restructured facilities.”
Mrs. Ahmed said that the results from ongoing impact assessment of COVID-19 effects on impairment by banks indicate modest impact given regulatory policy measures already implemented, adding that these, coupled with close monitoring by authorities and enhanced risk management practices by financial institutions, would help to mitigate the emerging risks and preserve financial system.
“Credit to the oil and gas sector accounted for about 26% of the industry’s total loans and advances, making the sector the single most important in terms of credit exposure of the banking system,” Edward Adamu, another monetary policy committee member,” stated.