Fitch: Growth for Nigerian banks

Fitch Ratings said Nigeria's banking sector has experienced accelerated growth, which could weaken asset quality and capital ratios.

With Nigerian banks' individual ratings at D and with a significant amount of capital flowing into the system, on balance, it would appear that bank ratings would remain stable, the agency said.

However, for those banks on positive outlook, upward movement in their issuer default ratings could occur if, on the back of their capital-raising, they successfully diversify and reduce concentration risks, Fitch said.

Conversely, should the rapid credit growth lead to both weaker asset quality and capital ratios, there could be pressure on the national and individual ratings, the agency added.

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