According to information from four banks’ financial records, there were N478 billion worth of non-performing loans in Nigeria during the first half of 2023.
About N478.93 billion in non-performing loans were reported by Guarantee Trust Bank Holding, FBN Holding, and two other companies in the six-month period ending June 2023.
Non-performing loans have the most impact on First Bank.
The amount is roughly 16% of the N413 billion reported for the fiscal year that ends on December 31, 2022.
First City Monument Bank and Fidelity Bank are the other two banks.
According to Punch, FBN Holdings recorded N226.24 billion in non-performing loans by value in the first half of 2023, up from N2024.29 reported in 2022, with a non-performing loans ratio of roughly 4.3% and N5.26 trillion in gross loans and advances.
The banks reported N3.79 trillion in gross loans and advances and a 5.4% non-performing loan ratio for the 2022 fiscal year.
By the value of the first half of 2023, Guarantee Holding announced N115.29 billion in non-performing loans, up from N103.37 billion in the fiscal year 2022.
The bank reported that the Group’s IFRS Stage 9 Stage 3 loans closed at 4.6% in half year 2023 from 5.2% in 2022 in its presentation to investors and analysts.
The bank said that the biggest percentages of non-performing loans (20.9% and 30,96%, respectively) were held by individuals and other emerging industries.
While FCMB Group reported N52.66 billion in Non-Performing Loan Value as of the first of 2023 from N45.01 billion in 2022, Fidelity Bank reported roughly N84.73 billion as of the first half of 2023 from N61.37 billion.
Banks are to debit defaulters at all financial institutions, per CBN regulations.
As a result of the development, banks in Nigeria have continued to debit defaulters’ bank accounts in order to lower the amount of non-performing loans while also writing off bad loans.
The Central Bank of Nigeria (CBN) issued the Global Standing Instruction (GSI) in 2020, among other things, to monitor chronic debtors and defrost non-performing loans in the banking sector.
In the event of a default, the CBN’s Global Settlement Initiative (GSI) enables banks to recoup the outstanding principle and interest from any account kept by a debtor at any financial institution inside the nation.
The NCC recently declared that it would penalize lending apps that collect users’ phone numbers for marketing purposes.
The NCC promised to cooperate with the telecom industry in identifying the offenders.
On Friday, September 9, 2023, NCC declared that the N120 billion USSD debt owed by banks and telecom companies had been resolved.