Financial Sector Overview

Nigerian businessmen having a discussion

Income Group: Low Income

Nigeria’s financial sector is less developed relative to the regional average and smaller in size than that of other countries in the low-income group, but remains relatively more diversified than its peers.

Based on a cross-country comparison, net interest margins, bank cost-income ratios, and bank overhead costs show that the efficiency of the banking system is higher than income-group and regional averages, and that its ability to channel funds to the private sector, as indicated by the ratio of private sector credit to GDP, is in line with that of peer countries.

Read the full financial sector profile