In Nigeria Professor says banks may go bankrupt

Adeola Adenikinju, a Professor of Economics from the University of Ibadan during the Sixth African Petroleum Congress and Exhibition (CAPE VI) in Abuja stated that Nigerians banks are at risk of bankruptcy.

  • Published:
Banks in Nigeria play

Banks in Nigeria

(CBN)
24/7 Live - Subscribe to the Pulse Newsletter!

Adeola Adenikinju, a Professor of Economics from the University of Ibadan during the Sixth African Petroleum Congress and Exhibition (CAPE VI) in Abuja stated that Nigerians banks are at risk of bankruptcy.

Adenikinju explained that some banks have loaned some of the energy companies who are currently not producing. Further adding that these energy companies find it difficult to payback debts.

Read: Minister says Nigerian companies would survive global crude oil hike

If nothing is done there is that possibility of banks going bankrupt. Some of the banks are exposed to the energy sector, oil sector and electricity sector.

Now, some of those companies are not producing and the interests on the loans are increasing, making it more difficult for them to service those debts. These would put those banks in deep problem.” Adenikinju said.

He urged the Federal Government to consider setting up an intervention funds that would help these energy companies in repaying their debts.

Read: Nigeria to begin exportation of petroleum, petrochemical products in 4 years

“Maybe the Federal Government has to step in to help them out, like what it did to the electricity sector.

“The sector was given money, which did not directly go to the electricity companies. It was partly to clear the loan that they borrowed from the banks, so that the banks will not collapse,” he said

Do you ever witness news or have a story that should be featured on Pulse Nigeria?
Submit your stories, pictures and videos to us now via WhatsApp: +2349055172167, Social Media @pulsenigeria247: #PulseEyewitness & DM or Email: eyewitness@pulse.ng. More information here.