Oil and Gas and electricity companies’ debts to Nigerian banks increased to N5.94tn at the end of 2020 from N5.25tn recorded in December 2019.
This was contained in the Central Bank of Nigeria (CBN)’s sectoral analysis of banks’ credit.
The N5.94tn constituted 29.16 percent of the N20.37tn loans advanced to the private sector by the banks as of December.
The apex bank noted that oil and gas firms accounted for the biggest portion of bank loans, as their debts rose from N4.58tn in December 2019 to N5.18tn in December 2020.
This indicated an increase of N600bn, aledeh.com reports.
Similarly, the debt owed by power firms to the banks increased from N671.45bn in December 2019 to N763.22bn in December 2020.
The CBN report further revealed that oil firms operating in the downstream, natural gas and crude oil refining subsectors owed N393tn as of December, up from N3.42tn recorded in the previous year, while those in the upstream and services subsectors owed N1.25tn in December, up from N1.16tn recorded in the previous.
Power generation firms and independent power producers increased their total debt to N443.37bn in December from N373.22bn a year before, while transmission and distribution firms owed banks N319.85bn as of December, up from N298.23bn a year before.