The Business NG - June 23, 2025

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BusinessNG Editorial Focus – June 23, 2025

Nigeria’s banking sector is under mounting pressure as fresh warnings from Fitch Ratings spotlight its vulnerability to fiscal shocks and regulatory rigidity. This edition of BusinessNG examines Fitch’s latest alarm on the banks’ overexposure to government debt—now at 35% of total assets and an astonishing 350% of sector equity. The Central Bank’s unyielding 50% Cash Reserve Ratio (CRR), described by Fitch as “unremunerated reserves,” continues to squeeze liquidity from the system, leaving banks struggling to balance solvency, lending, and returns.

Despite these risks, responses to the CBN’s recent regulatory forbearance directive—granting temporary relief on loan classifications—suggest banks are not standing still. We spotlight institutions demonstrating resilience through transparency, solid capital buffers, and diversified income streams, even as credit risks rise in oil, power, and manufacturing sectors.

This week, BusinessNG provides expert insights into how Nigerian banks are navigating systemic constraints, maintaining investor confidence, and preserving shareholder value amid macroeconomic uncertainty. The editorial also tracks broader financial system signals, from foreign exchange turbulence to regulatory realignments shaping Nigeria’s monetary landscape.