No banking crisis in Nigeria, says Central Bank


Nigeria’s Central Bank has dismissed fears of a banking crisis despite several alarming happenings, including the recent resignation of the CEO, chairman and 10 board members of Nigeria’s eighth-biggest lender, Skye Bank, following the biggest drop in the bank’s share price in over six months. The Central Bank was quoted by AFP as having said in an email statement:

"The attention of the Central Bank of Nigeria (CBN) has been drawn to malicious rumours and unfounded speculations that some banks in the country may have gone, or may be going, into distress. The CBN wishes to reiterate in the strongest terms that these rumours and speculations are untrue and do not reflect the actual health of the individual banks and, indeed, the entire banking industry."

Nigeria, Africa's leading economy, relies on oil sales for as much as 70% of government revenue. However, due to low oil prices over the last two years, the country is in financial crisis and on the verge of a recession. Banks are struggling to bring in money and extend credit due to nonperforming loans, the media has reported. Furthermore, in June, CBN allowed the naira to float for the first time.

Related articles