National Economy
Monday, July 28, 2025
  • Home
  • News
    • International Business
  • Lead-In
    • Cover
    • Investigation
  • Economy
    • Nigerian Economy
    • Fiscal Policy
    • Energy
    • Agri Business
    • Transportation
    • Industry
    • Competition
    • Homes & Property
    • Insurance
    • Companies & Markets
      • Companies
      • Capital Market
  • Tech
  • States & Politics
  • Commentary
    • Analyst
    • Business Matters
    • All Angles Considered
    • ClickSend
  • Editorial
  • Data
  • Others
    • Opinion
    • Money Guide
    • Analysis
    • Growth
    • Sport Economy
No Result
View All Result
Read News
National Economy
  • Home
  • News
    • International Business
  • Lead-In
    • Cover
    • Investigation
  • Economy
    • Nigerian Economy
    • Fiscal Policy
    • Energy
    • Agri Business
    • Transportation
    • Industry
    • Competition
    • Homes & Property
    • Insurance
    • Companies & Markets
      • Companies
      • Capital Market
  • Tech
  • States & Politics
  • Commentary
    • Analyst
    • Business Matters
    • All Angles Considered
    • ClickSend
  • Editorial
  • Data
  • Others
    • Opinion
    • Money Guide
    • Analysis
    • Growth
    • Sport Economy
No Result
View All Result
National Economy
No Result
View All Result
Home Lead-In

Cash Crunch Induces High Loan Default Rate For Banks – Survey

by Bukola Idowu
2 years ago
in Lead-In
Reading Time: 2 mins read
Nigeria-BVN2-1200x900
Share on FacebookShare on TwitterShare on Telegram

The cash crunch experienced in the country in the wake of the Central Bank of Nigeria (CBN)’s naira redesign policy induce massive loan default by bank customers, a recent survey has shown.

The survey conducted by Successory Nigeria Ltd which analysed responses of top bank staff revealed that loan approval peaked between January to March 2023 but customers were unable to repay.

“The non-availability of cash has resulted even in sharp increase in loan default and overdue on all fronts which invariably affected the earnings of our institutions. Above all, it has increased operating costs.

“I am happy we are gradually trying to put the bitter experience behind us but the scar from it is still hurting,” one of the respondents said.

You May Like

‘FG’s New Power Bill Transfers ₦5trn Subsidy Burden To Consumers’

Nigeria Targets 8,500MW Electricity Generation Within 18 Months

The survey highlighted that the exercise exposed the greed of some Nigerians with penchant for profiting from citizens at every given opportunity.

The survey concluded,”The failure of the exercise showed gaps in political engineering and management. The currency exchange, national census and national elections all planned to happen within ninety days to the end of this administration were just too many national activities to coordinate within this short period.

“Some respondents actually remarked that this policy was a deliberate punishment to make them poorer. We hope this research will guide future policies and economic decisions that will impact on the people to ensure that they do not further impact negatively on their livelihood or plunge them into poverty with adverse effects too on the economy.”

The CBN in October 2022, announced the introduction of a new N1,000, N500 and N200 notes by December 15 and the withdrawal of the old notes.

The CBN set January 31, 2023 as initial deadline before subsequent extension to February and December, 2023 after the Supreme Court ruled on the matter.

The bank withdrew over N2trn from the system leaving citizens and businesses to suffer a chronic cash crunch.

Poultry Association of Nigeria (PAN) said its members lost more than N50 billion worth of over 15 million crates of eggs due to the policy.

But banks are not left out as loan repayment was frustrated due to the policy.

About 78.6 per cent of respondents who spoke to Successory, an Abuja based consulting firm said customers did not make loan repayment when due.

But during the period of the naira crunch, financial institutions increased loan approvals and disbursements, according to 78.6 per cent of the respondents.

Another challenge that hit financial institutions was a rise in corporate running cost affected by inflation, according to 100 per cent of the respondents.

 

 

 

ShareTweetShare
Previous Post

Diallo Urged To Catch The Eye Of Ten Hag

Next Post

FCMB Shareholders Get N5bn Dividend

ANOTHER GOOD READ

‘FG’s New Power Bill Transfers ₦5trn Subsidy Burden To Consumers’
Lead-In

‘FG’s New Power Bill Transfers ₦5trn Subsidy Burden To Consumers’

7 days ago
Nigeria Targets 8,500MW Electricity Generation Within 18 Months
Lead-In

Nigeria Targets 8,500MW Electricity Generation Within 18 Months

7 days ago
Investors Lose $100m As 15 Startups Shut Down After Raising Funds
Lead-In

Investors Lose $100m As 15 Startups Shut Down After Raising Funds

7 days ago
TikTok Cracks Down On Nigeria’s Harmful Content, Deletes 3.6m Videos
Lead-In

TikTok Cracks Down On Nigeria’s Harmful Content, Deletes 3.6m Videos

7 days ago
Nigeria’s ₦3.2trn Annual Outbound Medical Tourism Unacceptable –Experts
Cover

Nigeria’s ₦3.2trn Annual Outbound Medical Tourism Unacceptable –Experts

7 days ago
20 States Risk July Flooding Despite ₦620bn Ecological Funds
Lead-In

20 States Risk July Flooding Despite ₦620bn Ecological Funds

2 weeks ago
Next Post
FCMB Shareholders Get N5bn Dividend

FCMB Shareholders Get N5bn Dividend

Most Recent

My Noodles Café Opens 16th Outlet in Lagos

My Noodles Café Opens 16th Outlet in Lagos

July 26, 2025
NiDCOM Partners With FirstBank On Banking Services For Diaspora Housing Platform

NiDCOM Partners With FirstBank On Banking Services For Diaspora Housing Platform

July 26, 2025
FirstCap CEO Ukandu Tasks Govt, Others On Collaborative Efforts To Develop Citizens’ Potential

FirstCap CEO Ukandu Tasks Govt, Others On Collaborative Efforts To Develop Citizens’ Potential

July 25, 2025
NiDCOM, FirstBank Launch Diaspora Housing Platform

NiDCOM, FirstBank Launch Diaspora Housing Platform

July 26, 2025
Federal Gov’t Moves To Curb Illicit Financial Flows

Federal Gov’t Moves To Curb Illicit Financial Flows

July 22, 2025
IMF: Nigeria Must Expand Cash Transfers To Reduce Poverty

IMF’s First DMD Gopinath Quits, Returns To Harvard August

July 22, 2025
ICT Sector Records 31.6% Growth, Contributes 10% To GDP

ICT Sector Records 31.6% Growth, Contributes 10% To GDP

July 22, 2025
Capital Flight: NNPC Boss Ojulari Warns Against Holding Africa’s Refining Vision Hostage

Capital Flight: NNPC Boss Ojulari Warns Against Holding Africa’s Refining Vision Hostage

July 22, 2025
Advertise with us

© 2024 | National Economy

No Result
View All Result
  • Home
  • News
    • International Business
  • Lead-In
    • Cover
    • Investigation
  • Economy
    • Nigerian Economy
    • Fiscal Policy
    • Energy
    • Agri Business
    • Transportation
    • Industry
    • Competition
    • Homes & Property
    • Insurance
    • Companies & Markets
      • Companies
      • Capital Market
  • Tech
  • States & Politics
  • Commentary
    • Analyst
    • Business Matters
    • All Angles Considered
    • ClickSend
  • Editorial
  • Data
  • Others
    • Opinion
    • Money Guide
    • Analysis
    • Growth
    • Sport Economy

© 2024 | National Economy