Nigerian central bank offers some relief to country's banking sector

Godwin Emefiele, Governor of the Central Bank of Nigeria (CBN)

The Nigerian banking sector finally has some breathing space after the country’s central bank lowered capital reserve requirements (CRR) for banks from 31% to 25%. 

It is hoped the measure, introduced by the Central Bank of Nigeria on September 22, will boost liquidity to a banking sector that has been under severe stress since the collapse of the global oil price, which also led to the collapse of government revenues in the oil-reliant country.

NPL ratios have been on the rise since the oil price fall, and there has been a substantial reduction in trade volumes and profit margins across the board as corporates in the oil and gas sector fail to meet bank obligations.

Read more: Africa: Nigerian central bank offers relief to bank sector /Euromoney magazine