Introduction
This report on Nigeria’s banking industry covers financial institutions which include banks, other credit granting, lease financing, and loyalty and reward programmes, as well as central banking. Nigeria’s banking sector is the second largest in sub-Saharan Africa behind South Africa. Total assets were worth N39.6-trillion (naira) in August 2019. Domestic systemically important banks (D-SIBs), which are banks that may have a major impact on the economy if they fail, accounted for N22.39-trillion (63.8%) of N35.10-trillion total industry assets at the end of December 2018. Domestic credit was 0.19% (N34.3-trillion) of real GDP in Q3 2019, increasing from 0.15% (N26.4-trillion) in Q3 2018.
Strengths
• A robust banking regulatory framework has been implemented.
• Digital banking is helping to increase financial inclusion.
• The banking system is well capitalised, safely above the capital adequacy ratio.
Weaknesses
• Mergers of large banks with failed or distressed banks are increasing impaired loans for the merged entities.
• Oil-dependent economy vulnerable to commodity price shocks.
• Operating expenses of large commercial banks are increasing due to staff costs and implementation of technology platforms.
• Security concerns, including high levels of crime and terrorism.
• Shortage of skills.
• The sector is dominated by the major commercial banks.
• Weak and corrupt institutions.
Opportunities
• The expected growth of Islamic banking locally and continentally.
• The large unbanked population can be reached through digital banking.
Threats
• An increase in bank robberies endanger lives of customers and staff and affect banks’ profitability.
• Continuing slow economic growth, rising unemployment, and double-digit inflation may keep consumer spending under pressure.
• Government expenditure assumes relatively stable international oil prices.
• Increase in security threats and cybercrime activities.
• Pressure from the regulator to increase loans that might lead to increasing non-performing loans.
Outlook
Some stakeholders believe the biggest challenges facing Nigerian banks will be the increasing number of non-performing loans resulting from deteriorating macroeconomic conditions. Low levels of economic growth could impact on financial stability through higher unemployment and the reduced ability to service debt by households and companies. This, in turn, could lower the profitability of banks and affect the quality of banks’ assets. The central bank wants to boost economic growth in line with government policy. It is likely to keep using non-traditional policy tools, such as raising lenders\' loan-to-deposit ratios to force them to give out credit and support private sector output. New non-bank entrants and technological advances will challenge banks’ business models and fundamental change is inevitable.
The Banking Industry in Nigeria
2020
Full Report
R 1 900.00(ZAR) estimated $104.79 (USD)*
Industry Landscape
R 1 330.00(ZAR) estimated $ 73.35 (USD)*
Table of Contents
[ Close ]| PAGE | ||
|---|---|---|
| 1. | INTRODUCTION | 1 |
| 2. | COUNTRY INFORMATION | 1 |
| 3. | DESCRIPTION OF THE INDUSTRY | 2 |
| 3.1. | Industry Value Chain | 7 |
| 3.2. | Geographic Position | 9 |
| 4. | SIZE OF THE INDUSTRY | 10 |
| 5. | STATE OF THE INDUSTRY | 13 |
| 5.1. | Local | 13 |
| 5.1.1. | Corporate Actions | 20 |
| 5.1.2. | Regulations | 20 |
| 5.1.3. | Enterprise Development and Social Economic Development | 24 |
| 5.2. | Continental | 25 |
| 5.3. | International | 31 |
| 6. | INFLUENCING FACTORS | 33 |
| 6.1. | Economic Environment | 33 |
| 6.2. | Government Initiatives | 35 |
| 6.3. | Financial Inclusion | 35 |
| 6.4. | Operating Costs | 37 |
| 6.5. | Information Technology (IT), Research and Development and Innovation | 38 |
| 6.6. | Environmental, Social and Governance (ESG) Factors | 41 |
| 6.7. | Terrorism and Security | 41 |
| 6.8. | Labour | 43 |
| 6.9. | Cybercrime and Fraud | 45 |
| 7. | COMPETITION | 46 |
| 7.1. | Barriers to Entry | 47 |
| 8. | SWOT ANALYSIS | 47 |
| 9. | OUTLOOK | 48 |
| 10. | INDUSTRY ASSOCIATIONS | 49 |
| 11. | REFERENCES | 50 |
| 11.1. | Publications | 50 |
| 11.2. | Websites | 51 |
| APPENDIX 1 | 52 | |
| Summary of Notable Players in all sub-Sectors of the Banking Industry | 52 | |
| COMPANY PROFILES | 56 | |
| ABBEY MORTGAGE BANK PLC | 56 | |
| ACCESS BANK PLC | 59 | |
| ASO SAVINGS & LOANS PLC | 74 | |
| BANK OF AGRICULTURE LTD | 77 | |
| BANK OF INDUSTRY LTD | 79 | |
| CENTRAL BANK OF NIGERIA | 82 | |
| CORONATION MERCHANT BANK LTD | 84 | |
| DEAP CAPITAL MANAGEMENT & TRUST PLC | 88 | |
| ECOBANK NIGERIA LTD | 90 | |
| FCMB GROUP PLC | 97 | |
| FEDERAL MORTGAGE BANK OF NIGERIA | 100 | |
| FIDELITY BANK PLC | 103 | |
| FIRST BANK OF NIGERIA LTD | 106 | |
| FSDH MERCHANT BANK LTD | 111 | |
| GUARANTY TRUST BANK PLC | 115 | |
| INFINITY TRUST MORTGAGE BANK PLC | 122 | |
| INFRASTRUCTURE BANK PLC (THE) | 125 | |
| JAIZ BANK PLC | 127 | |
| LETSHEGO MFB NIGERIA LTD | 131 | |
| MULTIVEST MICROFINANCE BANK LTD | 133 | |
| NATIONAL ECONOMIC RECONSTRUCTION FUND (THE) | 135 | |
| NIGERIAN EXPORT-IMPORT BANK | 137 | |
| OMOLUABI MORTGAGE BANK PLC | 140 | |
| POLARIS BANK LTD | 143 | |
| RAND MERCHANT BANK NIGERIA LTD | 146 | |
| STANBIC IBTC BANK PLC | 148 | |
| STANDARD CHARTERED BANK NIGERIA LTD | 157 | |
| STERLING BANK PLC | 161 | |
| TAJ BANK LTD | 166 | |
| UNION BANK OF NIGERIA PLC | 168 | |
| UNITED BANK FOR AFRICA PLC | 173 | |
| UNITY BANK PLC | 177 | |
| WEMA BANK PLC | 180 | |
| ZENITH BANK PLC | 183 |
