The
Managing Director, Afrinvest Securities Limited, Mr. Ike Chioke has expressed
concern about the possibility of banks not being able to recoup their
investment in the power sector and its likely consequence on the financial
system.
Chioke
noted that with the current revenue profile of the power companies, if they are
not able to service their debts, the indebtedness would have severe consequence
on the banking system.
Speaking
at the launch of the ‘2014 Nigerian Banking Sector’ report by Afrinvest, Chioke
said: “Our view, as you think about the issues in the industry, with the
lending that the industry has done, particularly to the power sector, if there
is a problem in the problem in the power sector and they are not able to
service all these loans they have taken, we are definitely going to see a
problem in the balance of the Central Bank of Nigeria (CBN).”
The
CBN balance sheet, he added, “may not
