Banking

Nigeria had seven banks with total assets in excess of N1trn ($6.4bn) as of end-2011, with the top four accounting for 55.62% of the sector’s net profits. Yet although the continent’s most populous nation boasts some of its largest banks by assets, just 21% of Nigeria’s population of about 165m people is banked, according to a 2011 study by the Central Bank of Nigeria (CBN). Bank credit remains skewed towards corporate borrowers, with about 80% of the top 14 banks’ income coming from corporate banking in 2011. The mortgage market remains small, with total lending in this segment equivalent to less than 1% of GDP. While the sector fell short of expectations of a full turnaround in 2011, first-half results for 2012 marked a turnaround in the industry’s profitability. This chapter contains interviews with Lamido Sanusi, Governor, Central Bank of Nigeria; and Razia Khan, Head of Research for Africa, Standard Chartered.