From The Report: Nigeria 2023
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While many Nigerian banks are likely to see greater profitability in 2023, they are still grappling with distressed legacy loans to oil, gas and power companies. Moreover, the cautious policies of financial institutions and the Central Bank of Nigeria (CBN) are indicative of uncertainty in the global financial sector, reflected in continued caution in the policies at home. However, the CBN’s recent policy announcements regarding cryptocurrencies may portend a more expansive regulatory posture. Ultimately, the asset quality and capital ratios of banks are set to remain strong as such institutions maintain a conservative approach to credit growth. Furthermore, Nigeria’s financial technology (fintech) segment is set to further impact banking by streamlining and widening services offered by conventional banks, as well as by creating greater competition between conventional lenders and standalone fintech firms.