Nigeria: Banks Still Face High Risk - S&p

Abuja — Non-performing loans which used to be the bane of the Nigerian banking industry has reduced drastically as the strong economic growth of the last three years empowers banks to write off some bad loans while the liquidity in the system enables more loans beneficiaries to honour their repayment commitments.

A report on the Nigerian banking industry published recently by Standards & Poors (S&P), a leading international rating agency which rates 110 sovereign states, however, considers the Nigerian banking industry to be of high risk despite this soothing news. The low ranking of the banking system in Nigeria reflects the high operational and credit risks facing the very young and increasingly competitive banking sector, Standard & Poor's noted in a report titled

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