Nigerian banks pile up bad loans as cash crunch bites

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Nigerian banks are piling up bad loans again due to the downturn in the country’s economy. The country’s five banks, otherwise known as Tier one banks, have seen their loans rise by about 142 percent. Analysts say if the situation continues, it could impede the growth of the banking industry and its capacity to supply credit to the economy.

The total amount of bad loans recorded by 14 Nigerian banks quoted on the country’s stock exchange increased by a whopping 80 percent in the first nine months through September this year.