Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Nigeria Banks at Risk From Corporate Governance Issues, S&P Says

Feb. 11 (Bloomberg) -- Nigerian bank ratings are threatened by corporate governance issues and rapid loan growth as competition increases credit risk, said Standard & Poor’s.

“We see a risk that the momentum behind regulatory improvements may slow after leadership changes at the central bank this year,” Samira Mensah, a Johannesburg-based credit analyst at S&P, said in a statement today. “The future growth and stability of the Nigerian banking sector will largely depend on a cohesive regulatory framework, together with political and institutional stability.”

Central Bank of Nigeria Governor Lamido Sanusi, 52, will step down when his contract ends in June and he said last month his successor’s main challenge will be to maintain the regulator’s independence. During his five-year term, he fired bank executives to clean up an industry that was near collapse.

Nigerian economy is projected to grow 6.5 percent this year and stable inflation in Africa’s biggest oil producer will support loan growth of as much as 30 percent in 2014, S&P said.

Fitch Ratings said on Jan. 31 that pan-African banking companies face regulatory risks after the Nigerian Securities and Exchange Commission criticized Ecobank Transnational Inc. for failing to address governance issues amid allegations of executive fraud and misconduct.

To contact the reporter on this story: Chris Kay in Lagos at ckay5@bloomberg.net

To contact the editor responsible for this story: Vernon Wessels at vwessels@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.