Shocking! See How Much Oil Firms are Owing Nigerian Banks

 

According to data obtained from the Central Bank of Nigeria, power firms and oil and gas companies operating in Nigeria are owing banks in the country about N3.72 trillion as at June 2015.

 

In its Statistical Bulletin for the Second Quarter of 2015, the CBN said the indebtedness of the energy firms was 27.7 per cent of the total credit to the private sector which stood at N13.433 trillion in the period under review.

 

The huge debts by the firms are being attributed to the low price of oil in the international market, which has negatively impacted on the revenue profile of the companies.

 

The total indebtedness of the energy firms as at June end was N147 billion or 4.11 per cent above their total debts of N3.573 trillion as the end of 2014. But it represented a slight decline of N108 billion or 2.82 per cent compared to the N3.828 trillion recorded as at the end of May 2015.

 

The apex bank, while giving a breakdown of banks’ credit to the energy sector, said at the end of June, downstream oil and gas, natural gas and crude oil refining companies owed banks N2.059 trillion compared to N2.285 trillion and N2.047 trillion owed in May 2015 and December 2014, respectively.

 

Similarly, independent power projects and power generating companies were indebted to the banks to the tune of N353.91 billion, compared to N357.501 billion owed in May 2015, and N276.125 billion as at the end of 2014.

 

On the other hand, upstream oil and gas services companies owed banks N1.147 trillion against N1.027 trillion and N1.099 trillion as at May 2015, and December 2015.

 

Power transmission and distribution companies owed N161.244 billion compared to N158.57 billion and N150.88 billion as at May 2015 and December 2014, respectively.