Non-Performing Loans in Nigeria’s banks drop to 3.9% in June – CBN

The Nigerian banks’ Non-Performing Loans NPLs (Bad Loans) fell to 3.9 percent in June 2024 compared with 4.8 percent in April 2024.

Members of the Central Bank of Nigeria Monetary Committee disclosed this in their personal statements at July’s 296th MPC meeting recently released by CBN.

Bala Bello, a member of MPC, said that the decline in NPL showed improvement in industry risk management practices and implementation of regulatory policies to manage bad loans such as its Global Standing Instruction and GSI policy.

Another member of MPC, Bandele Amoo, noted that the nation’s banking industry is relatively stable and sound at the end of July 2024.

“The NPL, Capital Adequacy Ratio (CAR) and Liquidity Ratio (LR) remained within the maximum regulatory thresholds,” Amoo said.

This comes as the MPC agreed to raise the country’s interest rate to 26.75 percent last month in a bid to tackle rising inflation which stood at 34.19 percent in June 2024.

The apex bank had in April 2024 announced new minimum capital requirements for all Nigerian banks to achieve Nigeria’s $1 trillion economy target.

DAILY POST recalls that CBN on July 13, 2020, issued a guideline on GSI to enhance loan recovery across the banking sector, which took effect from August 1, 2020.

Daily Post