The Non-Performing Loans (NPLs) in the Nigerian Banking sector increased by N148.26 billion in the first half of 2020 Data from the Nigerian Bureau of Statistics (NBS) has revealed. The NBS’s NPL data which shows a significant drop of N728.94 billion representing a 40.75 percent decline in NPLs between end of December 2018 and same period in 2019 saw the NPL figures grew again as June 2020.
A review of the date however revealed that loans to four sectors: Construction, Oils and Gas, Reals Estate, and the General Commerce (Trade) contribute most to the NPL growth in the six months ending June 2020. The four sectors had growths of N81.08bn; N48.88bn; N25.16bn and N25.59bn respectively, in NPLs as at first half of 2020.
Other sectors that had NPL growth are: Information and Communication (N23.32bn), Manufacturing (N14.19bn), Professional, Scientific and Technical activities (N3.35bn), Finance and Insurance (N3.5bn), Human Health and Social Work activities (N2.39bn). Administrative and Support Services and 4 other sectors has less than N1bn growth in their NPL in 6 months.
Transport and Storage, Public Utilities, Power and Energy, General Commerce and Education had drops in their NPL figures by N23.16bn, N18.33bn, N15.32bn, N20.30 and N2.08bn, respectively. Agriculture Sector and Government both had less than N1bn growth in NPLs
In terms of percentage growth, Mining and Quarrying grew the most with over 1000% in the 6 month review period but with credit exposure of below N1bn, Other with high growth in NPLs are: Capital Market with a growth of 450% from less than N1bn in December 2019 to N3.44bn as at June 2020; Construction (93.42%); Finance and Insurance (76.35%); Real Estate (50.58%); Professional and Scientific Activities (40.69%) and other.