A number of loan customers, both individuals and corporates, are finding it difficult to meet their loan obligations, leading to rising loan loss provisioning for the banks, a banking Industry Report 2016 has revealed.
Titled Changing Strategies, the report said that the situation was also hampering the banks’ ability to create new loans.
It stated that Nigerian banks were changing strategies to deal with the current economic challenges and satisfy stakeholders.
“Despite the recent challenges, there are huge banking opportunities in the Nigerian economy,” it said. “Nigerian banks need to develop more constructive strategies to increase their share of the non-oil sector in their loan portfolios.”
It revealed that the crash in crude oil prices and oil production and the attendant slowdown in economic activities in Nigeria affected the performance of the banking industry in the last two years.