Banks: No More Credit For Fuel Importers

Banks have foreclosed further lending to importers and marketers of petroleum product in Nigeria, New Telegraph has learnt.
This is coming at a time when the over $2.2 billion loans to the downstream sector worsened liquidity problem rocking the lenders.

Over $1 billion out of the total loan was extended to the marketers alone, while the total facility is poorly serviced, raising interests to N160 billion and heightening fear of hiccups in petroleum products’ supply.

Marketers, comprising Major Oil Marketers of Nigeria (MOMAN), Independent Petroleum Marketers Association of Nigeria (IPMAN), and Depot and Petroleum Products Marketers Association (DAPPMA), confirmed that the banks have started to “tail” them over the loan, maintaining that operations of the financial institutions and the country’s financial system are under threat due to the loans.

Head, oil and gas investment section of a first generation bank told this newspaper that all the big banks have got their fingers burnt due to the loans, most of which, he said, are no longer performing.

The New Telegraph, January 23, 2017

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