S&P Global: Nigerian Banks' Assets 11% in Govt Securities, Profitability Expected Amid Sector Outlook
According to S&P Global, government securities constitute 11% of Nigerian banks' assets, influencing their credit extension choices towards lower-risk sovereign instruments. The report highlights the banking sector's outlook, projecting resilience and positive profits in the medium term despite regulatory hurdles and tightening capital requirements.
S&P Global forecasts Nigeria's real GDP growth to average 3.7% between 2025 and 2026, supported by both oil and non-oil sector activities. The report anticipates a gradual easing of inflation to around 2.1% by 2026, potentially leading to a 50 basis point interest rate cut.
While Nigerian banks are expected to see a slight decline in profits in 2026, they are projected to remain strong compared to regional peers, with a focus on interest margin growth and non-interest income.
Plus234Feed summary based on reporting from Nairametrics. Read the original report below.
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