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Nigeria’s Bad Loans Soar as Banks Battle Slumping Economy

  • NPL ratio rises to 11.7% at the end of June, Central Bank says
  • The problems may worsen in second half of the year, CBN says
Updated on

Bad loans in Nigeria’s banking system soared to more than double the limit set by the regulator as the industry struggles with an economic downturn.

The ratio of non-performing loans to total credit rose to 11.7 percent at the end of June from 5.3 percent at the end of 2015, the Abuja-based Central Bank of Nigeria, which requires banks to keep the measure below 5 percent, said in a report on its website.