Talk of Nigeria’s banking sector today is dominated by the challenges facing lenders at home. With a growing dollar liquidity crisis, depressed oil prices and sluggish economic growth, the country’s banks are in a tough spot. But, beyond the domestic market, Nigeria’s lenders are facing new challenges – as well as some opportunities – in their continuing story of regional expansion. Today, Nigeria’s largest banks boast a footprint across parts of western, eastern and central Africa.
While this growth offered significant upside potential during the years of the commodity boom, the outlook today is less certain. Across the continent, the near-term prospects for economic growth have dimmed as currency volatility and falling commodity prices have prevailed. These trends have emerged as regulators in a number of key markets are ramping up their capital requirements for banks. As a result, the prospects for Nigerian banks’ subsidiaries across Africa are changing.
