By Andy Chukwu
The Central Bank of Nigeria in its 2018 Financial Stability Report has disclosed that the Power Sector and airline projects in the country got a total of N301.37bn intervention fund for 2018 under its energy policy support.
Part of the report read, “The sum of N3.25bn was disbursed to one project under the scheme in the second half of 2018, bringing cumulative disbursements to N301.37bn, of which N180.61bn was for 45 power projects and N120.76bn for 24 airline projects.
“The sum of N13.35bn was repaid in the second half of 2018, resulting in cumulative repayments of N145.52bn.”
It stated that under the Nigerian Electricity Market Stabilisation Facility, N24.34bn was disbursed to 31 market participants in 2018, comprising one distribution company, 18 generating companies, six gas companies and six service providers.
Cumulatively, it added, N183.09bn had been disbursed, of which N8.68bn had been repaid, resulting in total repayments of N30.46bn.
Under the Nigeria Bulk Electricity Trading Payment Assurance Facility, the bank stated that N176.78bn was disbursed.
The CBN said banking industry stress test, which covered 21 commercial and five merchant banks, was conducted to evaluate and determine the resilience of the industry to probable and adverse shocks, including credit, liquidity, interest rate and contagion risks.
It stated, “Baseline position capital adequacy ratio for the banking industry at end-December 2018 was 15.26 per cent, indicating 3.18 percentage points increase from the 12.08 per cent recorded at end-June 2018.
“The baseline banking industry non-performing loan ratio was 11.64 per cent at end-December 2018, showing a slight improvement of 0.81 percentage points from the 12.45 per cent recorded at end-June 2018.
The baseline ROA and ROE of the banking industry stood at 0.18 and 2.44 per cent, respectively at end December 2018, the report stated.
The stress test revealed that the banking industry could withstand a shock of up to 75 per cent increase in the industry NPLs as the CAR remained above 10 per cent.
However, the industry was vulnerable to shocks above 100 per cent increase in the NPLs as the industry CAR fell below 10 per cent.
It added that the credit concentration stress test showed that the CAR of the banking industry fell below the 10 per cent regulatory threshold.