of our banks’ risk frameworks directly impacts every facet of our economy
Regulatory Evolution: The Central Bank of Nigeria has made significant strides in aligning our regulatory framework with global standards. The implementation of Basel II and III capital requirements, alongside the introduction of the Internal Capital Adequacy Assessment Process , has elevated the sophistication of risk management practices. However, challenges in implementation and supervision persist.
Emerging Fintech Challenge: The rapid rise of fintech companies and payment service banks is reshaping the competitive landscape. Traditional banks are facing pressure on their fee-based income streams and must innovate to retain market share. Collateral Valuation: In a country where land is often used as collateral, the absence of a centralized and up-to-date land registry system complicates accurate collateral valuation and liquidation in case of default.
Equity Risk: The Nigerian Stock Exchange, while growing in sophistication, remains relatively illiquid and prone to sharp movements, especially in bank stocks which form a significant portion of the market capitalization. The stability of our banking sector is the bedrock upon which Nigeria’s economic aspirations rest. From the market stalls of Kano to the tech hubs of Lagos, from the oil refineries of Port Harcourt to the agricultural heartlands of the Middle Belt, every Nigerian has a stake in the resilience of our financial system.
of our banks’ risk frameworks directly impacts every facet of our economy