The Deputy Governor, Financial System Stability Department, Central Bank of Nigeria (CBN), Mrs. Aisha Ahmad, has said that 17 commercial banks have submitted requests,last May to restructure over 32,000 loans for individuals and businesses impacted by COVID-19 pandemic.
The pandemic, according to the World Bank, has become a threat to stability in the banking sector and could push another five million Nigerians into the poverty bracket. The 32,000 loans for individuals and businesses represent 32.94 per cent of total industry loan portfolio, with the manufacturing and general commerce sectors constituting the bulk of the restructured facilities.
Ahmad, in her personal statement at the last Monetary Policy Committee meeting held in May, posted on the CBN’s website said the CBN would continue to monitor potential risks to financial stability. She said financial soundness indicators remained strong despite the headwinds and rapid expansion of credit, which increased by N3 trillion between May 2019 and the April 2020.
The credit growth was driven by the Loan to Deposit Ratio (LDR) policy. “This resilience notwithstanding, the industry remains exposed to shocks from spillover effects of the pandemic on macroeconomic conditions.