Tuesday, February 7, 2017
Video - Nigerian banks under pressure as naira is forecast to lose more value
In Nigeria, rising non-performing loans and an imminent fall in the naira's value have put banks in a precarious position. They need to raise fresh capital amid a distressed economy. Checks show that the Capital Adequacy Ratio of a number of mid- and large-tier banks is at the threshold stipulated by the Central Bank of Nigeria. This means that in the absence of additional capital, a slight depletion in capital will force a number of the banks to fall below the minimum measures prescribed. This comes amid predictions by economic and financial experts that the naira will hit between 350 and 400 to the U.S. dollar this year, compared with the current rate of 305.