17 Banks To Restructure 32,000 Individual And Business Loans

Over 32,000 loans for individuals and businesses have been sent to the Central Bank of Nigeria (CBN) for restructuring approval. The loans are for persons and organisations that were affected by the coronavirus pandemic. The request to restructure the loans is one of the many palliatives bank customers are enjoying after CBN cancelled requirements to obtain loan.

AllNews learnt that the 32,000 loans were from 17 banks. The request to restructure was made known in Monetary Policy Committee notes by the deputy governor, CBN, Aishah Ahmad and seen by AllNews. The notes was from the Monetary Policy Committee (MPC) meeting on May 28, 2020.

It was gathered that the number of loans requested to be restructured represents 32.94 per cent of the total industry loan portfolio. The manufacturing and general commerce sectors accounted for the most loans requested to be restructured by the banks.

"As at end-May 2020, staff reports indicate that 17 banks submitted requests to restructure over 32 thousand loans for individuals and businesses impacted by the pandemic, representing 32.94 per cent of the total industry loan portfolio, with the manufacturing and general commerce sectors constituting the bulk of the restructured facilities.” Ahmad said in the notes.

It was added that, "Credit to the oil and gas sector accounted for about 26% of the industry’s total loans and advances, making the sector the single most important in terms of credit exposure of the banking system,” Edward Adamu, another monetary policy committee member,” she added.

CBN Cancels Requirements To Obtain Loan

The requirement for Households and Small and Medium Scale Enterprises (SMEs) to obtain loans from the Central Bank of Nigeria (CBN) N50 billion COVID-19 Targeted Credit Facility has been waived by the apex bank to enable applicants to easily access the loan they need to withstand the COVID-19 pandemic impact.

There have been problems relating to the loan requirements as many individuals and entrepreneurs couldn't provide guarantors to secure the loan. This is one of the reasons the Managing Director of NIRSAL Microfinance Bank Plc, Abubakar Kure, said prevented the disbursement of loans to applicants.

So CBN waived the guarantor requirement to make the process of obtaining the loans easier than initially planned.