Moody’s says Nigerian banks’ exposure to the oil and gas industry is substantial, at around 27 percent of total loans as at the end of 2019. Moody’s also stressed that the quality of banks’ oil and gas loan portfolios will further deteriorate as a majority of these loans were extended to the upstream and service segments, where borrowers are more sensitive to oil price movements than downstream. Bongo Adi, Senior Lecturer at the Lagos Business School joins CNBC Africa to discuss the impact of the lower oil prices on Nigeria’s oil industry and the banking sector.
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