According to S&P Global Ratings, crude oil prices and the volatility of the naira are key risks to Nigerian bank asset quality in 2026. This was disclosed in its Africa Banking Outlook 2026 titled ‘Favourable Conditions Support Loan Growth And Asset Quality’. The primary concern for Nigerian banks remains the heavy concentration of risk in specific sectors and currencies. “Asset quality in Nigeria remains vulnerable to oil price and currency volatility, since 50 per cent of loans are denominated in foreign currency and about one third are exposed to the oil and gas sector. This shift, while supportive of broader economic activity, is projected to compress the margins of commercial banks: “Nigerian and Egyptian banks’ profitability is likely to decline due to lower interest rates and stabilising inflation.

Source: Punch February 06, 2026 01:46 UTC