Nigeria Banks Find Raising Cash ‘Tough’ in Shrinking Economy
- Economic slump hurts revenue as loan defaults increase
- Regulators finalizing findings after review of country’s banks
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Nigerian banks are finding it difficult to raise capital as a shrinking economy cuts revenue and deters investors, the industry’s regulator said.
“It’s been tough,” Umaru Ibrahim, managing director of the Nigerian Deposit Insurance Corp., said in an interview in the southwestern city of Abeokuta on Tuesday. Banks require “adequate capital that would help them cushion any adverse effect of loan defaults or losses,” he said.