Omoregie OK
The current economic situation in Nigeria like in many other countries makes it almost inevitable that a number of companies will be financially distressed and in need of some form of reorganization to ensure they can continue as a going concern. As at July 2016, over 4 million employees have lost their jobs given challenges faced by their companies (FSB, 2016). By the end of 2015, industry and CBN reports put the total stock of non-performing loans at about N620 billion, which is almost at the CBN regulatory threshold of 5%. This position has deteriorated to 22% as at March 2016, compared to 3.8% in March 2015. The CBN Financial Stability Report for the second half of 2015, shows that non-performing loans (NPLs) in the Nigerian banking system rose by 78.8% over 2014 figures from N649.63 billion as of December 31, 2015 compared with N363.31 billion recorded at the end of December 2014 (CBN, 2015).
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