S&P says Nigerian banks are still at risk

Jun 29, 2010

Nigeria's banks are still at risk following the global financial crisis, despite the sector benefiting from a bailout in 2009.

This is according to Managing Director for Financial Institutions at Standard & Poor's (S&P) John Gibling, who said at a conference in the country yesterday (June 28th) that its banking system "is very high risk", Reuters reports. "In [terms of] regulatory reform there is still a long way to go," he was quoted as saying, adding Standard & Poor's has given many banks in the nation the single B rating.

Mr Gibling called for Nigerian banks to improve their approach to risk management in order to make themselves more secure, as well as reduce the reliance on short-term funding. However, he also praised Central Bank Governor Lamido Sanusi and former holder of the position Chukwuma Soludo for preventing a financial disaster by conducting the bailout last year.

Mr Sanusi is supported in his position by four executive board members and a further six non-executive representatives.