The figures amounted to about 6.4 per cent of the gross credit of the banks to the economy which stood at N18.9tn as of the period under review.
According to the latest statistics, the banks have gradually reduced the bad debts in their books in recent years.
This was linked to increased recoveries, write-offs and disposals by the lending institutions.
The lending institutions’ non-performing loans stood at N1.67tn as of the end of March 2019, from a figure of N1.79tn as of the end of 2018, according to figures from the National Bureau of Statistics (NBS) on selected banking data.
Central Bank Governor, Godwin Emefiele, at the end of the Monetary Policy Committee Meeting last week, affirmed that the non-performing loans had decreased in the sector.
In Emefiele’s words, “The committee noted the decrease in NPLs ratio to 6.4 per cent at end-June 2020 from 9.4 per cent in the corresponding period of 2019, on account of increased recoveries, write-offs and disposals.
“The committee expressed confidence in the stability of the banking system and urged the bank to monitor the compliance of Deposit Money Banks to its prudential and regulatory measures to sustain the soundness and safety of the banking industry.”
He disclosed that the aggregate domestic credit (net) grew by 5.16 per cent in June 2020 compared with 7.47 per cent in May 2020.
According to him, the committee commended the CBN Loan-to-Deposit Ratio initiative to address the credit conundrum as the total gross credit increased by N3.33tn from N15.56tn at end-May 2019 to N18.90tn at end-June 2020.
The CBN governor said: “These credits were largely recorded in manufacturing, consumer credit, general commerce, and information and communication and agriculture, which are productive sectors of the economy.”
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