Business Fitch Backs Nigerian Banks to Withstand Tumultuous Times

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Nigeria - Fitch ratings has backed Nigerian banks to survive the current troubling times plaguing the country's economy, Thisday reports.

Nigeria has been hit by the oil price crash which has seen the naira's value nosedive and the country's credit demand negatively affected.

Loan growth in Nigeria climbed to 25 per cent in 2014 and according to Fitch, there is strong demand for new lending in Nigeria.

However Fitch says the growth recorded by Nigerian banks should provide favourable conditions for the financial institutions in 2015 despite the decline in commodity prices, Fitch Ratings has said.

In addition, the agency specifically pointed out that Nigeria's buoyant non-oil and services sectors, plus private consumption are holding up credit demand.

The global rating agency noted in a statement yesterday that credit growth was set to expand because of the strong demand for infrastructure financing and the buoyant private sector.

These, according to Fitch, are likely to offset the threats from weaker commodity prices and heightened political risk and uncertainty.


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