- The Central Bank of Nigeria (CBN) Deputy Governor (Economic Policy), Dr. Sarah Alade has revealed that oil and gas exposures constitute about 40 per cent of the banks’ loan portfolio.
- However, Alade, who disclosed this in an interview with The Banker magazine, pointed out that only about 50 per cent, of the 40 per cent mentioned above, was to the upstream sector, where the greatest risk currently resides.
- “These loans were booked when the price of oil was $140 per barrel. Now that oil has fallen to about $40 per barrel, the obligors are finding it difficult to meet repayment obligations. Consequently, most of these facilities have been restructured,” Alade said.
Source: Alade: Oil Sector Exposure Constitutes 40% of Banks’ Loans
