Nigerian banks are on the verge of restructuring more than a third of their entire loan portfolio after encountering repayment troubles on account of the coronavirus pandemic, according to a member of the Central Bank of Nigeria (CBN)’s Monetary Policy Committee, Reuters reported on Thursday.
Seventeen banks have handed in their requests to restructure over 32,000 credit facilities for individuals and businesses, translating to 33% of loans, Aisha Ahmad, a Deputy Governor of the CBN, said in a statement published on the apex bank’s website.
The bulk of the loans planned for restructuring, according to Ms Ahmad, is within the manufacturing and general commerce sectors.
“Results from ongoing impact assessments of COVID-19 effects on impairment by banks indicate a modest impact given regulatory policy measures already implemented,” she said.
Tier 2 lender, FCMB announced in May it was restructuring half of its loans, predominantly involving the oil and gas, and retail sectors.