Economic Pressures Driving Rise in Non-Performing Loans — Group
Economic Pressures Driving Rise in Non-Performing Loans — Group
Economic Pressures Driving Rise in Non-Performing Loans — Group
A financial group has warned that Nigeria’s worsening economic conditions are fueling a surge in non-performing loans (NPLs) across banks.
Recent data show that eight major Deposit Money Banks recorded a combined ₦2.59 trillion in NPLs in 2024, up from ₦1.29 trillion the previous year. The average NPL ratio also rose to 4.99%, with some banks exceeding the Central Bank of Nigeria’s 5% threshold.
The rise is linked to high inflation, steep lending rates, forex volatility, and heavy exposure to risky sectors like oil and gas. Analysts caution that without urgent policy interventions, more borrowers may default, threatening banks’ stability and tightening credit for businesses.
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