Wednesday, February 8, 2023
  • Contact Us
  • Terms of Use
  • Privacy Policy
  • DMCA
  • CCPA
Oil Market News Today
Advertisement
  • Home
  • Market
    • All
    • Africa
    • Europe
    • Middle East
    • Russia
    • US
    • Venezuela
    Chinese oil giant CNPC eyes BP’s $1.5bn stake in Oman gas field

    Chinese oil giant CNPC eyes BP’s $1.5bn stake in Oman gas field

    Global Ginger Essential Oil Extract Market 2020 with (COVID-19) Impact

    Global Ginger Essential Oil Extract Market 2020 with (COVID-19) Impact

    Global Ginger Essential Oil Extract Market 2020 with (COVID-19) Impact

    Global Ginger Essential Oil Extract Market 2020 with (COVID-19) Impact

    Construction of Dangote oil refinery Africa’s largest nears completion

    Construction of Dangote oil refinery Africa’s largest nears completion

    Oil rises further from 3-week lows, but headwinds loom amid pandemic

    Oil rises further from 3-week lows, but headwinds loom amid pandemic

    TC Energy says new U.S. permit to boost Keystone pipeline oil exports by

    TC Energy says new U.S. permit to boost Keystone pipeline oil exports by

    • US
    • Russia
    • Europe
    • Middle East
    • Africa
    • Venezuela
  • Oil News
  • Oil & Gas
  • Diesel
  • Oil Price
  • Politics
  • Industry
  • Companys
  • Production
  • Natural Gas
No Result
View All Result
  • Home
  • Market
    • All
    • Africa
    • Europe
    • Middle East
    • Russia
    • US
    • Venezuela
    Chinese oil giant CNPC eyes BP’s $1.5bn stake in Oman gas field

    Chinese oil giant CNPC eyes BP’s $1.5bn stake in Oman gas field

    Global Ginger Essential Oil Extract Market 2020 with (COVID-19) Impact

    Global Ginger Essential Oil Extract Market 2020 with (COVID-19) Impact

    Global Ginger Essential Oil Extract Market 2020 with (COVID-19) Impact

    Global Ginger Essential Oil Extract Market 2020 with (COVID-19) Impact

    Construction of Dangote oil refinery Africa’s largest nears completion

    Construction of Dangote oil refinery Africa’s largest nears completion

    Oil rises further from 3-week lows, but headwinds loom amid pandemic

    Oil rises further from 3-week lows, but headwinds loom amid pandemic

    TC Energy says new U.S. permit to boost Keystone pipeline oil exports by

    TC Energy says new U.S. permit to boost Keystone pipeline oil exports by

    • US
    • Russia
    • Europe
    • Middle East
    • Africa
    • Venezuela
  • Oil News
  • Oil & Gas
  • Diesel
  • Oil Price
  • Politics
  • Industry
  • Companys
  • Production
  • Natural Gas
No Result
View All Result
Oil Market News Today
No Result
View All Result
Home Market Africa

Oil exposure raises questions for West Africa’s big banks in age of

July 17, 2020
in Africa
Oil exposure raises questions for West Africa’s big banks in age of
Share on FacebookShare on Twitter


Latest Oil MArket NewsPosts

Construction of Dangote oil refinery Africa’s largest nears completion

Oil tankers are making bizarre trips around the world as diesel glut hits

Uganda’s Ochanda wins global oil award

West Africa’s major banks could suffer a spike in loan defaults as lower oil prices and the acute economic impact of the coronavirus pandemic hits the region, analysts said.

In Nigeria, Africa’s biggest oil producer and fourth-largest banking sector by assets, lenders are heavily exposed to the energy sector. Lending to oil and gas companies represents around 40% of Nigerian banks‘ loan assets, according to financial research group Proshare Nigeria, while Fitch Ratings said that as of September 2019 oil and gas accounted for about 30% of Nigerian banks’ gross loans.

For Ecobank Transnational Inc., which is Togo-based but has a subsidiary in Nigeria, lending to oil and gas companies accounts for 18% of its loan book.

SNL Image

“The banking sector is exposed to inherently high economic imbalances because of Nigeria’s reliance on oil and its sensitivity to currency depreciation and high inflation. This leaves banks vulnerable to asset-price shocks and asset-quality problems,” said S&P Global Ratings credit analysts.

Lenders in Nigeria expanded lending last year to meet a central bank order to raise their loan-to-deposit ratios to 65%. Other factors working against Nigerian banks could include “risks stemming from further [foreign exchange] pressures, ongoing weak economic performance and rising government domestic and external debt,” Ratings analysts said.

The rating agency on March 31 lowered the long-term issuer credit ratings of six Nigerian banks, including Ecobank’s Nigeria unit Ecobank Nigeria Ltd., Access Bank PLC, Guaranty Trust Bank PLC Stanbic IBTC Bank PLC, United Bank for Africa PLC and Zenith Bank PLC.

Asset quality

Ecobank Transnational warned in April that its 2020 earnings “could be adversely affected by higher provisions and lower revenues.”

“More than half of Ecobank’s stage 2 loans are restructured oil and gas exposures in Nigeria,” Fitch Ratings said in a May report as it downgraded the bank.

As for Nigerian banks, their aggregate nonperforming loan ratio fell to 6.6% in April from 11.0% a year earlier, according to the central bank’s most recent data.

Lenders in Nigeria are having to restructure up to 40% of their loan books, according to Stanbic-IBTC estimates, making lending terms favorable for corporate and retail borrowers in order to reduce the likelihood of default. Such initiatives may be welcome, but they risk concealing the true extent of corporate distress, said Muyiwa Oni, regional head of equities research at Stanbic-IBTC in Lagos.

“Even if impairments don’t increase, interest income will fall because loan payments are being suspended or banks have cut rates in order to be more accommodative for their customers,” said Oni.

“Fee income will also be greatly reduced because trading companies — importers and exporters — are disrupted due to the pandemic.”

Cash flow problems

Government lockdown measures to contain the virus have halted many companies’ operations, especially in Lagos and Ogun state, causing in May the first contraction in the manufacturing Purchase Managers’ Index in 36…



Read More: Oil exposure raises questions for West Africa’s big banks in age of

Tags: AfricasageBanksbigexposureoilquestionsraisesWest

Related Posts

Construction of Dangote oil refinery Africa’s largest nears completion
Africa

Construction of Dangote oil refinery Africa’s largest nears completion

by Oil Market
July 31, 2020
0

Dangote oil Refinery, which is expected to be Africa’s largest oil refinery and the world’s biggest single-train facility upon...

Read more
Oil tankers are making bizarre trips around the world as diesel glut hits
Africa

Oil tankers are making bizarre trips around the world as diesel glut hits

by Oil Market
July 30, 2020
0

The Monte Toledo oil tanker in Algeciras, Spain, on March 6. Photo: Luke MacGregor | Bloomberg Text Size: ...

Read more
Uganda’s Ochanda wins global oil award
Africa

Uganda’s Ochanda wins global oil award

by Oil Market
July 29, 2020
0

The International Association of Oil & Gas Producers (IOGP) has presented the 2020 Outstanding Young Professional Award (OYPA) to...

Read more
Edinburgh oil firm to make big payouts to shareholders after $400m West
Africa

Edinburgh oil firm to make big payouts to shareholders after $400m West

by Oil Market
July 28, 2020
0

CAIRN Energy is set to capitalise on opportunities created by the slump in oil and gas prices after agreeing...

Read more
Cairn sells Sangomar stake to Lukoil – News for the Oil and Gas Sector
Africa

Cairn sells Sangomar stake to Lukoil – News for the Oil and Gas Sector

by Oil Market
July 27, 2020
0

Russia’s independent Lukoil has struck a deal to pay $300 million to Cairn Energy for a 40% stake in...

Read more
Nigerian Regulators Trade Blame As Killer Fuels Dominate Country’s Oil
Africa

Nigerian Regulators Trade Blame As Killer Fuels Dominate Country’s Oil

by Oil Market
July 26, 2020
0

While various scientific research results have linked annual deaths of more than 100,000 Nigerians to air pollution, partly caused...

Read more
Next Post
The dismantling of the oil industry in Venezuela and the defense

The dismantling of the oil industry in Venezuela and the defense

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Today Oil Markets

BP under scrutiny over Zambian pension shortfall – News for the Oil and Gas

BP under scrutiny over Zambian pension shortfall – News for the Oil and Gas

3 years ago
Oil Pressure Control Solenoid Valve Market Study Report (2020-2026),

High Pressure Oil Pump Industry 2020 Includes The Major Application

3 years ago
Nigeria’s potential crude oil reserves expected to fall by 6 billion

Nigeria’s potential crude oil reserves expected to fall by 6 billion

3 years ago
Saudi oil revenues down 40% in five months

Saudi oil revenues down 40% in five months

3 years ago
Global Aviation Fuel Market to Reach $238.5 Billion by 2026: AMR – Oil &

Oil and Gas Industry Can Implement New Ways of Working With Its Suppliers

3 years ago
Eni to Pay $185M to Settle Transocean Drilling Rig Dispute

Eni to Pay $185M to Settle Transocean Drilling Rig Dispute

3 years ago

Oil Market

Chinese oil giant CNPC eyes BP’s $1.5bn stake in Oman gas field

Chinese oil giant CNPC eyes BP’s $1.5bn stake in Oman gas field

July 31, 2020
Global Ginger Essential Oil Extract Market 2020 with (COVID-19) Impact

Global Ginger Essential Oil Extract Market 2020 with (COVID-19) Impact

July 31, 2020
Global Ginger Essential Oil Extract Market 2020 with (COVID-19) Impact

Global Ginger Essential Oil Extract Market 2020 with (COVID-19) Impact

July 31, 2020
Construction of Dangote oil refinery Africa’s largest nears completion

Construction of Dangote oil refinery Africa’s largest nears completion

July 31, 2020

Russia Oil Market

Global Ginger Essential Oil Extract Market 2020 with (COVID-19) Impact

Global Ginger Essential Oil Extract Market 2020 with (COVID-19) Impact

July 31, 2020
Global Ginger Essential Oil Extract Market 2020 with (COVID-19) Impact

Global Ginger Essential Oil Extract Market 2020 with (COVID-19) Impact

July 31, 2020
CORONAVIRUS (COVID-19) IMPACT ON Sandalwood Essential Oil Market OUTLOOK,

CORONAVIRUS (COVID-19) IMPACT ON Sandalwood Essential Oil Market OUTLOOK,

July 29, 2020
Gas, Oil and Dual-fuel Burners Market Size 2020, Global Industry Trends,

Gas, Oil and Dual-fuel Burners Market Size 2020, Global Industry Trends,

July 28, 2020

Europe Oil Market

Oil rises further from 3-week lows, but headwinds loom amid pandemic

Oil rises further from 3-week lows, but headwinds loom amid pandemic

July 31, 2020
Shell posts $18billion loss in second quarter – News for the Oil and Gas

Shell posts $18billion loss in second quarter – News for the Oil and Gas

July 30, 2020
Path to net zero: European oil majors outpace US companies on climate goals

Path to net zero: European oil majors outpace US companies on climate goals

July 29, 2020
Oil price holds near four-month high amid bearish signals – News for the

Oil price holds near four-month high amid bearish signals – News for the

July 28, 2020
  • Contact Us
  • Terms of Use
  • Privacy Policy
  • DMCA
  • CCPA

© 2020 MarketFor Oil.com

No Result
View All Result
  • Home
  • Market
    • US
    • Russia
    • Europe
    • Middle East
    • Africa
    • Venezuela
  • Oil News
  • Oil & Gas
  • Diesel
  • Oil Price
  • Politics
  • Industry
  • Companys
  • Production
  • Natural Gas

© 2020 MarketFor Oil.com