A document by the Central Bank of Nigeria, CBN, has revealed that bad loans in the country has leaped from around N600 billion in 2015 to N1.38 trillion in April, 2016
The bad loans ratio climbed to 10.1 percent from around 3.6 percent last year, which was well above the regulatory threshold limit of 5 percent, but the CBN attributed the increase to the poor macroeconomic conditions of the country.
The document showed that the total sum of loans stood at N13.36tr in April 2016.
The apex bank, specifically, mentioned the low price of crude oil and supply constrains at the forex markets as key factors responsible for the poor loans performance.
Recently, the CBN said it had issued circulars advising the banks to retain more of their earnings in anticipation of the risks that the rising NPLs might pose to their balance sheets.
