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Pandemic Barely Registered for Nigerian Banks and Their Bad Debt

  • Proportion of bad loans to total credit drop to six-year low
  • Lenders non-performing loan ratio to stay below 5% threshold

Nigerian lenders were able to bottle up their bad loans during the pandemic and could keep them at a low level last seen half a decade ago.

At the peak of the health crisis, the regulator permitted banks to adjust interest charges and loan terms without making additional provisions and gave more latitude for classifying debt as non-performing. Banks restructured as much as 41% of their loan book in 2020.