Non-performing mortgage loans rise to N94bn
Mortgage lenders are buckling under the weight of unpaid loans as job losses and inflation near a record high hinder the ability of customers to pay off their debts, Bloomberg has reported.
At least 55 per cent of the mortgage industry’s N94bn loans are classified as non-performing, according to the Nigeria Deposit Insurance Corporation.
The President, Mortgage Banking Association of Nigeria, Adeniyi Akinlusi, was quoted as saying, “They are just struggling to survive; a lot of them aren’t making money.”
63% of loan to Automotive Design and Development Council are non-performing-BoI
Saheed Olagunju, acting Managing Director of Bank of Industry (BoI) on Wednesday disclosed that 63 percent of the loans disbursed from the National Automotive Design and Development Council (NADDC) were non-performing.
Olagunju stated this at the National Assembly complex, Abuja, during an investigative public hearing held at the instance of the Adhoc Committee on automobile industry’s non-access to foreign exchange from Central Bank of Nigeria (CBN).
According to him, out of the total sum of N18.11 billion accrued into the account being managed by BoI while 37 percent are performing.
In order to achieve the set objectives of the automotive intervention fund, Olagunju urged National Assembly to complement Federal Government’s efforts to boost Nigeria’s ranking on the World Bank’s Ease of Doing Business by providing necessary legislative support.
IMF urges slowdown in borrowing for Nigeria
As Nigeria’s appetite for foreign debt grows, the International Monetary Fund, IMF says the country should be reducing its budget deficit and debt-service costs to “sustainable” levels. “Stronger macroeconomic policies are urgently needed to rebuild confidence and foster an economic recovery,” the Washington-based lender said in a report Thursday.
UBA, Stanbic IBTC’s Impairment Charges Hit N47.5bn
United Bank for Africa Plc and Stanbic IBTC Holdings Plc have set aside N47.48 billion to cover bad loans in their 2016 financial results. The provision showed a jump of 138 per cent compared to N19.9 billion they set aside in 2015.
Access Bank Plc, Guaranty Trust Bank (GTBank) Plc and Zenith Bank Plc, had reported a total loss provisions N119.59 billion, indicating an increase of 183 per cent from N42.297 billion in 2015.
However, when UBA and Stanbic IBTC released their audited results last week, they followed the same trend of rising impairment charges as a result of the economic headwinds that had affected some of their debtors.
FG to borrow $6.1bn to complete all rail projects by December 2019
The Federal Government has concluded plans to borrow 6.1 billion dollars from Chinese Exim Bank to complete all rail projects in the country by 2019.
The Minister of Transportation, Rotimi Amaechi, disclosed this on Monday in Abuja.
In a statement issued by Yetunde Sonaike, the Ministry’s Director of Public Relations, Amaechi was said to have made this known during the Ministry’s 2017 budget proposal defence at the National Assembly in Abuja. Amaechi said that the Federal Government had targeted the construction of Lagos – Ibadan, Kano – Kaduna rail projects and the first phase of the Coastal Rail (Lagos-Calabar) in the 2017 budget.
He said that President Muhammadu Buhari insisted that all rail projects in the country that had been awarded by previous administrations must be resuscitated and completed on or before the December 2019.
Non-performing loans will hit 12.5% in 2017 – Agusto & Co MD
The macro affects the micro and banking systems usually will reflect what is happening in the macroeconomic environment. The macroeconomic environment has affected the banking industry on two fronts - Asset quality and Earnings. Asset quality has deteriorated with delinquent oil and gas, power and general commerce loans. Agusto & Co is projecting higher double digit non-performing loans in the banking system - 12.5% in 2017 from 7.5% 2016. Loan losses will impair earning by up to 30%.
Banks lend 0.1% of total credit to MSMEs
TOTAL loans granted by banks to Micro, Small and Medium Enterprises (MSMEs) in Nigeria amounted to just over 0.1 percent of total banks’ credits to the private sector over the past five years. Figures obtained from the Central Bank of Nigeria (CBN) showed that out of the aggregate loans of N135.9 trillion disbursed to the economy between 2011 and 2015, only N159.75 billion went to the SMEs. Specifically, CBN Statistical Bulletin 2015 revealed that loans to SMEs for 2012 to 2015 represented 0.1 percent but a trend of consistent decline had been recorded since 2003.
W’Bank board meets on Nigeria’s $150m mining loan request
The Board of Governors of the World Bank is currently meeting to discuss the $150m loan that Nigeria is seeking from the institution to boost the fortunes of the mining sector, the Minister of Mines and Steel Development, Dr. Kayode Fayemi, has said.
Fayemi stated this at the 53rd Annual International Conference and Exhibition of the Nigerian Society for Mining and Geosciences in Abuja on Tuesday.
The minister also stated that the Federal Government was targeting $25bn contribution to the nation’s Gross Domestic Product from the mining sector by the year 2026.