The Central Financial institution of Nigeria has disclosed that the mixed financial institution lending to grease companies working within the downstream and upstream subsectors of the Nigerian oil and gasoline trade was N6.62tn as of December 2022.
Whereas operators within the downstream, pure gasoline and crude oil refining subsector owed banks N4.71tn, operators within the upstream and companies subsectors have been indebted to banks to the tune of N1.91tn.
The full debt rose by 110.83 per cent from N3.14tn in 2016 to N6.62tn in 2022.
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Whereas the debt has elevated considerably through the years, the oil and gasoline sector nonetheless struggles to service its debt and defaulting on loans.
This has raised banks’ publicity to non-performing loans in 2022, in keeping with an evaluation of the monetary statements of Warranty Belief Financial institution, United Financial institution for Africa, Zenith Financial institution, Ecobank Nigeria, Constancy, and WEMA Financial institution.
An NPL happens when the borrower fails to make scheduled funds for a specified interval.
The 2022 monetary statements of the Warranty Belief Financial institution confirmed that N21.6bn was recorded as NPLs from companies within the oil and gasoline sector (midstream and downstream).
GTB’s NPLs stood at 5.19 per cent of whole loans disbursed. With a complete sum of N1.92tn loaned in 2022, N102.3bn was recorded as NPL, with the oil and gasoline sector taking 21.21 per cent of the overall.
Whereas UBA didn’t state the worth of its NPLs for 2022, it famous that 16 per cent of the overall unpaid loans for the 12 months was held by the oil and gasoline sector.
For Zenith Financial institution, the oil and gasoline sector had a share of 44.3 per cent of the NPLs, representing N78.66bn. The full NPLs for the financial institution stood at N177.3bn for the 2022 monetary 12 months.
In 2022, Ecobank Nigeria recorded $179.7m as NPLs, with the oil and gasoline sector accounting for 35 per cent of the overall, equating to $62.8m.
A evaluate of Constancy Financial institution’s half-year monetary statements exhibits that the oil and gasoline sector accounted for N4.82bn of the financial institution’s whole NPLs or 8.9 per cent of its whole NPL.
For WEMA Financial institution, the oil and gasoline trade accounted for N5.11bn of the overall NPLs for a half-year interval.