The Central Bank of Nigeria (CBN) has reported a decline in Non-Performing Loans (NPLs) among Nigerian banks, with the ratio dropping to 3.9% in June 2024 from 4.8% in April 2024.
This improvement is attributed to enhanced risk management practices and the implementation of regulatory policies like the Global Standing Instruction (GSI) policy.
The Central Bank’s Monetary Policy Committee (MPC) highlighted that key indicators, including NPLs, Capital Adequacy Ratio (CAR), and Liquidity Ratio (LR), are within regulatory limits, reflecting stability in the banking sector.
This development follows the MPC’s decision to raise interest rates to 26.75% to address inflation, which stood at 34.19% in June 2024. Additionally, new minimum capital requirements for banks were introduced in April 2024 to support Nigeria’s goal of achieving a $1 trillion economy.