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Banks recover N40bn non-performing loans from ICT sector

Nigerian banks have recovered N39.4bn non-performing loans from its debtors in the Information and Communications Technology sector in one year.

Nigerian banks have recovered N39.4bn non-performing loans from its debtors in the Information and Communications Technology sector in one year.

As of September 2019, the Non Performing Loan, NPL, in the ICT sector stood at N76.54bn as against N115.94bn in the corresponding period of 2018, an analysis of statistics from the National Bureau of Statistics has shown.

This figure represents 33.9 per cent of the total bad debts the ICT companies owe Nigerian banks.

In situations where the interest on a loan or principal had not been paid for more than 90 days, such facility is regarded as a non-performing loan.

According to the NBS figures, by April 2019, bad debt in the sector had declined to N75.98bn and it rose to N77.21bn by June 2019.

The latest statistics indicated that the NPL in the sector was N76.54bn. The ICT sector is one of the several sectors that commercial banks have successfully recovered some of their bad debts.

Others sectors in which operators have paid back a significant percentage of their NPLs are mining and quarrying, manufacturing, real estate, general commerce as well as transport and storage.

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