Oil price slump, energy firms’ indebtedness endangers banks – CBN

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The Central Bank of Nigeria, CBN, has warned that financial institutions in Nigeria will be at grave risk in 2015 due to the low prices of crude oil in the international market and their huge exposure to oil and gas firms.
The CBN, in its Financial Stability Report for December 2014, stated that oil and gas firms owe financial institutions about N3.24 trillion, adding that low crude oil prices will pose a significant risk to Nigeria’s financial system and might lead to an increase in Non-Performing Loans, NPL.
According to the CBN, sustained low oil prices may, however, result in an increase …Read More

Source:: New Mail