According to the CBN, Nigerian banks’ non-performing loans dropped to 3.9% in June, reflecting an improvement in loan performance.
In June 2024, the Non-Performing Loans (NPLs), or Bad Loans, of Nigerian banks decreased to 3.9 percent as opposed to 4.8 percent that was recorded in April 2024.
In their personal statements, the members of Nigeria’s Central Bank Monetary Committee revealed this information during the 296th MPC meeting held in July and recently made public by CBN.
According to Bala Bello, who is a member of MPC, the drop in NPL indicates an enhancement in industry risk management tactics and effective implementation of regulatory measures aimed at controlling bad loans. One such measure includes their Global Standing Instruction (GSI) policy.
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By the end of July 2024, Bandele Amoo from MPC acknowledged that the banking industry in the country has achieved a state of stability and solidity.
According to Amoo, the NPL, CAR and LR did not exceed the maximum regulatory thresholds.
Last month, the MPC decided to increase the country’s interest rate to 26.75 percent with an aim of addressing inflation that reached 34.19 percent in June 2024.
In April 2024, the apex bank declared fresh minimum capital demands for Nigerian banks to meet Nigeria’s objective of attaining a $1 trillion economy.
On July 13, 2020, the CBN introduced a directive on GSI aimed at improving loan recuperation within the banking industry. This rule became effective from August 1st of that same year as reported by OBASANJONEWS.
