Skip to main content

Banks to recover N6.125 trillion loan from oil firms

Disrupting Nigerian banks, Evolution of Nigerian banks in 59-years , GTB, UBA, Zenith, Access Banks’ salary advance loans, Can a company operate without a website in 2019? , Banks refund N3.09 billion to customers over claims on excess charges, fraud, others  , Bank CEOs applaud NCC’s decision to suspend USSD charges, GTBank, Zenith, Access, FBN, 10 others spend over N8 billion on CSR, Banking: Evolving trends in the bankers’ market, GTBank, Access, FBNH, Standard Chartered wrestle over women entrepreneurs , GTBank, Access Bank, Zenith, FBN, 16 others disburse CBN’s N610.4 billion to farmers , Credit to government declines, as Credit to private sector hits N25.8 trillion, Banking sector NPLs down, loans up, Non-Performing Loans in Agriculture, construction, others rose to N143.76 billion, Asset seizure: Banks begins recovery of N6.125 trillion borrowed to the oil sector  
Wealth NG ads

Commercial banks in Nigeria are set to begin the recovery of N6.125 trillion borrowed by oil firms to braze themselves amidst the sector’s recapitalization fears.

The banks have reportedly issuedcorrespondences to oil firms, marginal filed operators and downstream operators, as debts in the sector, according to a 2018 CBN financial stability report, showed that N1.235 trillion had been added to the sector’s debt profile since 2016 when it stood at N4.89 trillion.

FG battles 6 oil firms for failure to remit N20 trillion , ExxonMobil, Shell, Chevron delay $58.4 billion oil and gas investment in Nigeria 

Banks are beginning to takeover collateral tied to the loans, a management staff of one the marginal field oil firms reportedly said over the weekend, as banks followed up on the correspondence sent to his firm.

 “Oil firms form the major part of their (banks’) heavy debtors’ list and they have written some of us with non-performing loans to prepare for the worst,” Anonymous Management staff said.

UCAP ads

The banks’ exposure in terms of loan facilities to the oil sector is, according to the CBN document, about N6.1 trillion debts.

Meanwhile, as earlier published on Nairametrics,bank’s non-performing loans have been on the decline and a chunk of which was attributed to the oil sector. As the CBN announced in 2019, the immediate suspension of interests on non-performing loans to oil marketers and similarly granting Deposit Money Banks the approval to directly debit bank accounts belonging to loan defaulters across all banks in the country.

[READ MORE: Banks borrow N19.64trillion from CBN in 2019)

However, according to analysts, CBN’s planned recapitalisation programme might trigger fresh waves of mergers and acquisitions in the banking industry adding that though the country’s banking industry had grown strong, as Capital Adequacy Ratio (CAR) increased from 10.2% in December 2017 to 15.5% in September 2019 and the percentage of Non- Performing Loans (NPLs) declined from its high of 14.7% in January 2017 to under 7% as at October 2019, New Telegraph reported.

Banks had helped indigenous firms with financing, helping them become key players in the nation’s oil and gas industry, but in recent years, indigenous firms are now struggling to maintain the assets they acquired through Federal Government’s marginal field programme.

Standard chartered

NO COMMENTS

LEAVE A REPLY

This site uses Akismet to reduce spam. Learn how your comment data is processed.

close

:)

Comments

Popular posts from this blog

Richest Pastors In Africa And Their Net Worth In 2019

Popular pastors are increasingly becoming Richest Pastors in Africa making headlines with open flamboyance and unreserved suaveness being an integral part of them.Many ask who might be the Richest Pastors in Africa today so a list of wealthiest African pastors, known for ranking on top and with a huge attendance in each service. These are servants of God, with a mission to spread the gospel of Christ through ministry. But in doing so some have emerged with rich investments and living a luxurious life. Below is a list of top 10 richest pastors in Africa! 1. Bishop David Oyedepo – $150 million Bishop David Oyedepo He is Africa’s number one richest pastor. Founder of Living Faith World Outreach Ministry. This Ministry started in 1981 and has become the largest church on the continent 2. Pastor E.A Adeboye – $130 million  Pastor E.A Adeboye He is one of the Nigerian Pastors with private jet, he is second among the richest pastors in Nigeria. His net worth reaches astonishing 130 millio...

Actress Chizzy Alichi Gets Married Traditionally In Enugu (Photos)

 IMAGE CELEBRITIES Actress Chizzy Alichi Gets Married Traditionally In Enugu (Photos) By  Adebiyi Chioma   On  Dec 9, 2019 Share Facebook Twitter WhatsApp BlackBerry Google+ Pinterest ReddIt Email Linkedin Tumblr StumbleUpon Seasoned Nollywood actress,  Chizzy Alichi and her hearthrob,  Chike Ugochukwu  married traditionally on Saturday December 7,2019. The actress who got engaged to her fiancee in September 2019, had her traditional marriage at her hometown in Enugu State and her colleagues turned up in their numbers to support her. Celebrities, such as, Judy Austin, Eve Esin, Iheoma Nancy, Patience Ozokwor and many others were spotted at the grand ceremony. Check-Out photos from the traditional wedding below: READ ALSO Why My Marriage To Star Actress, Foluke Daramola Can Never Crash –… READ ALSO: Similar Topics Photos: Married woman caught pant down with ex-lover, faces jungle justice in Enugu Actress Kate Henshaw glows in stunning new photos Your ...

I Wonder What My Father Was Doing When DANGOTE Was Becoming Rich- Tonto Dikeh, Says

NEWS VIRAL SPORT GOSSIP NOV 13, 2019 “I wonder what my father was doing when Dangote was becoming rich”- Tonto Dikeh Controversial Nollywood actress, Tonto Dikeh aka King Tonto has reacted to the N5billion and N100million donations by Nigerian oil moguls, Femi Otedola and Aliko Dangote. Reacting to this, the beautiful actress wondered what her father was doing when Aliko Dangote was becoming rich. She also wondered if he just cared about a fine face and forgot about the major thing, money. In addition, Tonto also thanked Femi Otedola for his N5billion donation to help the less privileged children. Even as she thanked him for his benevolence, she also wished he could stretch out his helping hand through other working foundations like hers. Related Posts: One Month After: What BBNaija 2019 housemates have been up to Femi Otedola and Dangote donate N5billion / N100Million respectively to Dj Cuppy’s foundation for the less privileged children Meet The #BBNaija Finalists; Frodd, Omashola, M...