Bad loans in Nigerian banks drop despite COVID-19 crisis

The volume of non-performing loans in the banking sector fell by 3.50 percent to N1.17 trillion in the third quarter of this year, despite the economic fallout of the COVID-19 pandemic.

The total amount of loans advanced by Nigerian banks to the economy rose by 5.58 percent to N19.87 trillion in Q3, according to the latest data obtained by Markets Reporters from NBS’ new report.

Bad loans in the banking sector had risen to N1.21 trillion in Q2 from N1.19 trillion in Q1.

The NBS data showed that commercial banks in the country recovered N17.85bn loans in Q3, up from N12.58bn a quarter ago.

Microfinance banks wrote off N3.77bn bad debts in Q3, compared to a write-off of N2.77bn in Q2.

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