bleak outlook

Nigeria: Naira plunge, inflation put squeeze on banking sector

By Dulue Mbachu

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Posted on September 11, 2023 15:20

The naira has lost more than 40% of its value since President Bola Tinubu’s decision in June to float it. AFP PHOTO/PIUS UTOMI EKPEI

The removal of fuel subsidies and implementation of a flexible exchange rate regime cause Nigerian banks to shoulder extra financial pressure.

A plunging naira and inflation at a two-decade high are posing crucial resilience tests for Nigerian banks, some of which might not be able to sustain the pressure over time, experts say.

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