Banks provide more loans to enhance development in Oil & Gas Sector
National Bureau of Statistics (NBS) recently reported in the Selected Banking Sector Data for Q3’2020 that the bad loans incurred by industries in the oil and gas sector decreased from N268.79 billion incurred in the second quarter of 2020 (Q2’2020) to N238.26 billion in Q3’2020.
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This development occured amidst the fall in the price of crude-oil and the 14% decrease in the output of crude-oil which was induced by the coronavirus pandemic.
The total bad loans owed by the oil and gas industry decreased by 11.6% when compared with the previous quarter.
As a result of this development, banking sector has set out to recuperate the oil and gas sector by providing more loans to the industries under the sector in Q3’2020.
Banks therefore gave N3.74 trillion credit to industries under the oil and gas sector, which is 18.8% of the total credit incurred in Q3’2020. This rate represents 3.4% and 10.41% increase when compared with Q2’2020 and Q3’2019 respectively.