As at the end 2017, Access Bank’s loans and advances to Oil and Gas companies and the power and energy sector stood at N545.308 billion, this amounts to a 4.85% increase compared to last year’s.
According to data contained in its 2017 Annual Report and Account, Access Bank loaned out N22.225 billion in 2017, adding to the cumulative sum of N530.083 recorded at the end of 2016.
The bank said it was able to keep lending to the sector despite the volatility associated with the sector as a result of deployment of unique risk management principle that came into effect in 2017. The bank, in its report, said that various risk management initiatives were established during the period, which has assisted in managing risks linked to the sector.
Gross loans and advances afforded to downstream oil and gas companies were down from N155.87bbillion in 2016 to N125.782 billion in 2017, showing a 19.3% decrease. In the downstream sector, the decrease in loans can be attributed to the fact that the NNPC assumed the role as the sole importer of the commodity, hence causing stoppage of fuel importation by oil marketers in early 2017.
In addition, Access Banks gross loans to upstream oil and gas companies increased by 18.45% to from N105.212billion recorded in 2016 to N124.628billion in 2017. The banks’ loans to crude oil refining companies rose by 7.84% from N33.386 billion in 2016 to N36.002billion recorded in 2017. Overall in the power and energy sector, loans granted to companies in the sector declined from N21.406Billion in 2016 to N12.076 billion in 2017, recording a 43.59% decline.
Photo Credit: Starr FM
