Nigeria, Non-performing assets, Banking reforms, Bank Consolidation.


The article examines the structure of the non-performing assets of the banking system in Nigeria with the view of ascertaining loan concentration. further attempt would be made to examine the causes of deteriorating assets and explore the complementary options for managing the non-performing loans. Following an introduction as section one, the rest of the paper is thus: section two focuses on definitional and conceptual issues, section three covers the literature review while section four addresses the methodology and trend of non- performing assets and the sectoral contributions. Section five, presents the complementary options and the concluding remarks. The study concluded that,, an averaged 23 percent, implying that for every N100.0 credit extended, N23.0 is bad. It has also been established that there is loan concentration in the system, which means that if there is any adverse development in that particular sub-sector, there could be a systemic effect in which many banks would be affected. The 10 big banks were more efficient than the smaller banks in extension of credit facilities. The bane of the small banks could be due to lack of competitive edge and expertise in credit administration.

Author Bio

The author is a staff of Central Bank of Nigeria.

Publication Title

CBN Bullion







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