27 C
Lagos
Saturday, January 16, 2021
- Advertisement -

Central Bank Says Over 1 million Loans Were Given at Interest Rates Below 20 Per Cent

Opinion

2020: A Year Like no Other By Dakuku Peterside

The year 2020 was supposed to be a great year. It was another Leap Year – the famed Olympic Games year when...

The Time to Restructure is Now – Bola Tinubu

Being with you at this special event today, I am visited by two competing emotions. I continue to feel a profound sense...

Africa and the COVID-19 Vaccine – By Dakuku Peterside

The year 2020 will forever be synonymous with Covid-19, a pandemic that brought the world to her knees. For the first time...

Buhari is Repressing Human Rights and Getting Away With It – By Kolawole Olaniyan

President Muhammadu Buhari is failing to live up to his promises to ensure respect for human rights, obey the rule of law,...

Nigeria’s Central Bank has announced that over one million bank customers took loans from their financial institutions in the last one year below 20% interest rate.

Deputy Governor, Financial Systems Stability of the central bank Aisha Ahmad said this during the in her statement at the last Monetary Policy Committee meeting. She said this was an improvement on data from previous years.

Ms Ahmad said: “The gradual decline reported in lending rates is a positive development that improves access to credit for more households and businesses with a view to stimulating economic activity, creating jobs and driving a more sustainable and inclusive growth. As at October 2020, 86.23% of total loans granted to over one million customers by Deposit Money Banks were at interest rates considerably below 20%; an improvement from 76.43% as at July 2019.”

Ms Ahmad asked financial institutions to be vigilant and ensure optimal liquidity levels to support price stability and sustainable economic growth.

She said the banking industry’s financial soundness indicators strengthened with non-performing loans ratio declining to 5.7% at end-October 2020, from 6.1% (end-August 2020), while capital adequacy improved to 15.5% from 15.3% over the same period.

Ms Ahmad said that profitability performance also remained satisfactory, buoyed by improvement in non-interest income.

“Financial sustainability of banks would be paramount as moratoriums on restructured loans lapse in the near term to strengthen absorptive capacity for any potential losses and maintain lending support to the real economy.”

- Advertisement -
- Advertisement -

Business Profiles

Ngozi Edozien

Ngozi Edozien is the founder and Managing Director of Invivo Partners Limited. She has over 20 years’ experience in finance/private equity, general...

Sanyade Okoli

Sanyade Okoli is Chief Executive Officer at Alpha African Advisory. She has over 21 years of financial advisory, private equity, corporate, commercial...

Samuel Nwanze

Samuel Nwanze is a director of Transcorp Power. He holds an MSc. degree in Finance and Management from Cranfield University in the...

Olukemi Adeniji

Ms Adeniji has a law degree and a Masters in International Law and Diplomacy (M.I.L.D) from the University of Lagos. She has...

Chikezie Nwosu

Chikezie Nwosu is an experienced senior executive with over 29 years local and international experience in the oil & gas industry vis-a-viz...