The Nigeria’s Non Performing Loans, NPL, ration stood at 10.1% as at April, 2016, the Central Bank of Nigeria has said.
The sudden rise in the NPL is said to be well above the prudential limit of five per cent. This was contained in a presentation by the Deputy Governor, Economic Policy, CBN, Dr. Sarah Alade, to the Bankers’ Committee meeting last week, entitled: State of the Economy and Update on the Regular Monetary Policy Committee.
According to the deputy governor, the rise in NPL is a result of the Risk Assets Examination of deposit money banks, DMBs, conducted in December last year.
The sustained low price of crude oil, supply constraints at the Forex market as well as other macroeconomic conditions were also said to have impacted negatively on the quality of bank loans.