Africa’s largest economy, beset by an 18-year high inflation rate and the naira at its lowest level ever against the dollar, now confronts a crisis of growth across key industries where banking, unlike most others, is virtually taking a smooth ride through the storm.
The Central Bank of Nigeria (CBN) has raised rates without break since last May, cumulatively by 7.25 per cent, one big spur for massive profitmaking by many banks last year, a major factor for even stronger performance at half-year 2022 (HY2022).
As lenders turn the central bank’s move against inflation into their own advantage by charging borrowers more, Nigeria’s decision to weaken the naira by about 40 per cent is creating perhaps a much bigger boom for banks.
