Non-performing loans of Nigerian banks decline 1.49% in Q2. Why it matters

The integrity of the Nigerian banking system may have been strengthened given a reduction witnessed in the percentage of non-performing loans. Figures from Nigeria Bureau of Statistics (NBS) put the percent improvement at 1.49 per cent in 2019 Q2.

From the latest statistics in September, the figure of the non-performing loan of the banks had moved from what it was, (N1.6trillion in Q1 to N1.4 trillion in Q2), thereby signaling a reduction from 10.79 per cent to 9.30 per cent of the total loans in the sector.

The statistics also revealed that gross loans in the banking sector stood at N15.48tn in Q2.

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Meanwhile, speaking on the developments, a financial analyst, Abiola Odutola, told Ripples Nigeria that the improvement would boost the trust reposed in the banks by depositors.

He said, “It is an indication that the banks are not losing the fight. This will make them stronger and boost depositors’ confidence. I hope they will come out better than this at the end of the year”.

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