By the end of 2025, the great majority of Nigerian banks are anticipated to remove their long-standing forbearance, according to a Tuesday report from Fitch Ratings.
However, in a recent peer credit study of the nation’s largest banks, the ratings agency noted that several big Stage 2 loans will be reclassified as impaired when the forbearance period expires.A loan that is not performing in accordance with the terms of the original arrangement is considered impaired, according to Daily Trust.
This comes as Agusto & Co. Limited, another rating agency, noted that as of December 31, 2024, 5.2% of the industry loan book was deemed non-performing, which is more than the 4% reported the year before. The decline of various loan facilities and the ballooning effect of the 40.4% naira depreciation during the year are the key factors in this.
About The Author
