The Selected Banking Data released by the National Bureau of Statistics (NBS) revealed that borrowings by Government and its Agencies in Nigeria have the highest year on year (YoY) Non Performing Loan (NPL) growth rate of 169% as at April 2019.
Government agencies NPL which is currently at N1.37 trillion has grown in NPL rate by over N1 billion from N640 million as at end of April 2018 to N1.72 billion as at end of April 2019. The government loans has 88% Naira component and 12% Dollar component.
The Data which shows a YoY reduction in total banking industry NPL by 23% from N2.2 trillion to N1.7 trillion, also revealed that Government and Human Health & Social Work Activities sectors are the only 2 sectors that had growth in their NPL rates. The Human Health Social Work Activities sector NPL grew by 4% from N13.8 billion to N14.3 billion.
Two sectorial classifications, Water Supply & Waste Management and Mining and Quarrying sectors had the most reductions in their NPL rate with 96.4% and 95.5% reduction respectively.
Real estate activities, Finance & Insurance and Administrative and Support Services activities has reduced NPL by 61.3%, 59.7% and 55.9% respectively. The sectors has N104 billion, N26 billion and N2 billion reduction in their NPLs from April 2018 to April 2019 respectively.
Four sectorial classifications namely: Power & Energy, Public Utilities, Agriculture, Forestry & Fishing and Capital Markets had the lowest reductions among the 22 sectors with 0.6%, 1.3%, 2.6% and 3.0% NPL reductions respectively.
A further review of the data shows that of the N15.4 trillion bank exposure to the 22 sectorial classifications, 64% are Naira component while the rest of 36% are Foreign component.
Water supply, Waste Management & Remediation activities have the highest Foreign component of 83%. While Public Utilities, Oil & Gas and Power & Energy follows with 74%, 60% and 59% foreign component respectively.
Art, Entertainment & Recreation, Administrative & Support Services, Education, Capital Market and Information and Communication had the lowest foreign loan components with 0.1%, 1.7%, 2.1%, 4.2% and 6.8 respectively.