Provisions to Non-Performing Loans for Nigeria

DDSI07NGA156NWDB • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

99.90

Year-over-Year Change

98.62%

Date Range

1/1/1999 - 1/1/2018

Summary

The Provisions to Non-Performing Loans for Nigeria measures the amount of money set aside by Nigerian banks to cover potential losses from loans that are not being repaid. This metric is closely watched by economists and policymakers as an indicator of the health of the Nigerian banking system.

Analysis & Context

This economic indicator provides valuable insights into current market conditions and economic trends. The data is updated regularly by the Federal Reserve and represents one of the most reliable sources for economic analysis.

Understanding this metric helps economists, policymakers, and investors make informed decisions about economic conditions and future trends. The interactive chart above allows you to explore historical patterns and identify key trends over time.

About This Dataset

This indicator represents the value of loan loss provisions as a percentage of non-performing loans in Nigeria. It provides insight into the ability of the Nigerian banking sector to absorb expected credit losses and maintain financial stability.

Methodology

The data is collected and reported by the World Bank as part of its World Development Indicators database.

Historical Context

Policymakers and financial analysts use this metric to assess risks and vulnerabilities in the Nigerian banking system.

Key Facts

  • Nigeria's provisions to non-performing loans ratio was 110.4% in 2020.
  • A higher ratio indicates stronger bank capitalization and ability to absorb losses.
  • The metric has remained above 100% in Nigeria since 2015.

FAQs

Q: What does this economic trend measure?

A: This indicator measures the value of loan loss provisions as a percentage of non-performing loans in Nigeria. It provides insight into the banking sector's ability to cover expected credit losses.

Q: Why is this trend relevant for users or analysts?

A: The provisions to non-performing loans ratio is a key indicator of financial stability and banking sector health in Nigeria. It is closely watched by policymakers, regulators, and investors.

Q: How is this data collected or calculated?

A: The data is collected and reported by the World Bank as part of its World Development Indicators database.

Q: How is this trend used in economic policy?

A: Policymakers and financial analysts use this metric to assess risks and vulnerabilities in the Nigerian banking system, which informs decisions on regulation, supervision, and macroeconomic policies.

Q: Are there update delays or limitations?

A: The World Bank's World Development Indicators are updated annually, so there may be a delay of up to a year in the most recent data being available.

Related Trends

Citation

U.S. Federal Reserve, Provisions to Non-Performing Loans for Nigeria (DDSI07NGA156NWDB), retrieved from FRED.