The newly introduced foreign exchange
policy that indirectly devalued the value of
the naira, has tremendously changed
banks’ lending dynamics, compelling
them to reject fresh loans for importation
of petrol, otherwise known as Premium
Motor Spirit (PMS), New Telegraph
Already, lenders in Nigeria have discarded
the N49 billion loan requests from
importers of petrol meant to service the
3.5 million metric tons second quarter
allocation schedule. The banks’ action,
stemmed from the May 1st total removal
of subsidy on fuel by the Federal
Government, which threw the 58.37 per
cent import permit for marketers in the
second quarter fuel allocation into
The Chief Executive Officer (CEO) of a Tier
1 bank, who confirmed this development,
said lenders are not disposed to granting
credits to oil importers because the
dynamics of risk have changed with the
fuel subsidy removal. Specifically, he said
banks, which had developed a product
paper around subsidy payments that are
usually guaranteed by the Federal
Government, are now perfecting a new
product paper that seeks to find another
way of making sure that their loans for
petrol imports are fully recovered. Banks
are only disposed to giving loans to
confirmed uptakers such as Mobil and the
likes because they are sure that such
loans would be repaid.