Large Nigerian Banks Have Weathered A Storm

The collapse of the oil price that began in 2014 was bad news for Nigerian banks, The Economist reported. A quarter of their lending was to oil and gas firms. Many businesses were left reeling after a currency crisis. The economy stuttered, then plunged into recession. Before the oil slump just 3% of loans were not being paid back. By 2017 some 15% had gone sour. The oil shock underscored an old truth: in choppy waters, it helps to be a big ship. The country’s large banks made tidy profits and now sit on sufficient capital. But smaller ones look shaky, even as currency problems have eased and the economy has recovered. Last year the central bank revoked the licence of Skye Bank, a struggling midsized lender.  Read more