Nigerian banks will find it challenging to grow earnings and expand their operations this year because of a slow economic recovery and low interest rates, according to an industry body.
“It's going to be tough in 2020 for banks,” Uche Olowu, the president of the Chartered Institute of Bankers of Nigeria, told reporters in Lagos on Thursday. Banks are changing strategies to focus on new areas in agriculture, financial technology and Nigeria's creative industries to grow their operations, he said.
Plans by the central bank to increase minimum capital requirements for banks in 2020 may trigger mergers and acquisitions in the industry, Olowu said.
To contact the reporter on this story: Emele Onu in Lagos at eonu1@bloomberg.net
To contact the editors responsible for this story: Stefania Bianchi at sbianchi10@bloomberg.net, Vernon Wessels, Chris Kay
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