a claw-back clause. AMCON’s exposure to unsecured loans, a minority of assets purchased, was limited to 5% of face value. By the end of 2011, AMCON had accumulated a total notional amount of N4.2trn ($26.46bn) in NPLs, at a cost of N1.76trn ($11.09bn). This amounted to four times more NPLs than banks had disclosed in their regulatory filings, according to CBN data.
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Articles & Analysis | Recouping revenues: Restructuring efforts are helping to recover past losses from The Report: Nigeria 2013
Articles & Analysis | Reforms ahead: Near-term changes to the pension system are under discussion from The Report: Nigeria 2013
Officials have been at work reforming Nigeria’s pension system for almost a decade, and are showing no signs of losing steam. While early attempts have failed to fix problems entrenched in the system, the government seems determined to tweak its features for as long as necessary to find the right mix and eliminate fraud from the system. An overhaul...
Articles & Analysis | Reaching out: The unbanked population is the focus of micro-financiers from The Report: Nigeria 2013
Although the 2004 wave of consolidation led to a near-doubling of bank branches, from 3535 in 2005 to 5565 in 2009, as per figures from the Central Bank of Nigeria (CBN), the number of financially included Nigerians was 23.6m by the end of 2008, according to Enhancing Financial Innovation & Access (EFInA), a financial development organisation....
Articles & Analysis | Expanding access: Consumer credit is increasingly important to the national economy from The Report: Nigeria 2013
Although credit to corporates and households rebounded strongly after the 2009 banking crisis, from N9.7trn ($61.11bn) in 2010 (28.2% of GDP) to N15.28trn ($96.26bn) in 2012 (35.1% of GDP), Nigerian individuals and enterprises remain relatively under-leveraged.
Articles & Analysis | Exploring options for growth: Plans for more stringent regulation are expected to improve sector penetration from The Report: Nigeria 2013
With a total premium value of $1.6bn in 2011, Nigeria’s insurance market is the biggest in West Africa, but in a wider context the market remains relatively undeveloped and coverage in the retail market is mostly limited to motor insurance. Reforms are ongoing at the federal level, with both successes and failures seen in recent years. A giant leap...
Articles & Analysis | Domestic focus: New legislation and emphasis on energy-related risk are set to drive development of local content from The Report: Nigeria 2013
A 2010 law mandating local content for insuring risks in the energy sector domestically aims to create growth from the current small base in the insurance sector. Enforcement is a potential challenge, if recent history and the current legal environment are any indication. Further, market studies indicate that profiting from providing coverage to...