Story by Kayode Tokede
The National Bureau of Statistics (NBS) has said a total of N100.42billion loans advanced by the nation’s commercial banks to power firms have been recorded as Non-Performing Loans (NPLs).
The power and energy sector, out of 22 sectors/business lines, accounted for the fifth biggest share of banks’ N1.69trillion NPLs as of April 30.
The total debt owed by power firms to banks stood at N683.93billion at the end of April, according to the NBS data.
A breakdown of banking sector credit to the private sector showed that the power and energy sector got the seventh biggest credit from banks.
The oil and gas sector received the lion’s share (N4.68trillion) of the N15.45trillion bank loans as of April 30, followed by the manufacturing sector (N2.24trillion), governments (N1.37trillion) and general commerce (N1.04trillion).
The total loan portfolio of power and energy firms is made up of a naira component of N280.42billion and a foreign currency component amounting to N403.51billion, according to the NBS.
NPL in the power and energy sector saw the smallest decline in one year, falling by 0.59 per cent from N101.07billion as of April 2018 to N100.42billion in April 2019.
The amount of the NPLs fell by 10.71 per cent in the oil and gas sector to N777.84billion; by 7.01 per cent in the general commerce to N166.86billion; by 27.72 per cent in the general sector to N151.12bn; by 21.82 per cent in the manufacturing sector to N113.82billion.
The amount of bad loans declined by 51.1 per cent in the information and communication sector to N75.98billion; by 61.26 per cent in the real estate sector to N65.87billion; by 34.81 percent in the construction sector to N59.23billion; by 46.24 per cent in the transportation and storage sector to N54.27billion.
The NPLs recorded in agriculture, forestry and fishing; finance and insurance; education and government sectors dropped by 2.56 per cent, 59.68 per cent, 32.84 percent and 34.24 per cent to N47.53billion, N17.63billion, N8.61billion and N1.72billion, respectively at the end of April 2019.
The NPLs in the remaining sectors, including capital market and arts and entertainment, stood at N49.77billion.