Oil/Gas Sector Still Enjoys Highest Concentration Of Bank Loans, NDIC

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Not too long after accounting for the bulk of the loans that dragged many Nigerian banks into troubled waters, along with the capital market and government, new data by the Nigeria Deposit Insurance Corporation (NDIC) says the nation’s oil and gas sector enjoyed the highest credit concentration in 2018.

According to the NDIC’s audited report for the period, the banks were exposed to oil and gas companies to the tune of N4.66tr, representing 30.46% of the banking industry’s total credits of N15.29tr as at December 31, 2018.
It was followed afar off by the Manufacturing Sector with ₦2.25tr or 14.71%; government borrowings summed up to ₦1.34tr or 8.78% of the total credits; while General Commerce accounted for ₦1.14tr or 7.44%. Finance and Insurance, as well as General sectors, received 6.49% and 6% of total credit, respectively.

On the financial conditions of the nation’s 26 deposit money banks in the period under review, the corporation explained that based on Capital Adequacy, Asset Quality, Management, Earnings, Liquidity and Sensitivity to market risk, “the overall condition of DMBs in the year 2018 was relatively stable and sound in 2018.”
It also noted the improvement in “average capital adequacy ratio from 10.23% in 2017 to 15.26%, liquidity ratio of 51.87% as against 45.56% recorded in 2017, an improvement in NPLs ratio from 14.84% in 2017 to 11.70% as well as improvement in earnings and profitability.”

https://investdata.com.ng/2019/08/oil-gas-sector-still-enjoys-highest-concentration-of-bank-loans-ndic/

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