news - Nigeria: Banks Battle to Improve Balance Sheets

2012 Annual Conference and the 1st African SPM Conference

from 24/09/2012 to 29/09/2012

Kampala (Uganda)

The Africa Microfinance Network (AFMIN) will organize its 11th Annual Conference
and the 1st African SPM Conference in Kampala, Uganda, from September 24th to 29th, 2012

Discover job opportunities available and their contacts
Click here
More links
More links
Nigeria: Banks Battle to Improve Balance Sheets
July 14, 2009

Abuja, July 14 (Daily Trust) — Nigerian banks are in a fierce competition for new business as companies try to bolster their balance sheets before stricter reporting standards are imposed at the end of the year, industry officials said.

Sub-Saharan Africa's second-biggest economy sees itself as rivalling Johannesburg in the coming years as an African financial services hub, but its banking transparency lags even smaller rivals such as Kenya.
The central bank has ordered Nigerian banks to adopt a common financial year-end accounting standard to restore investor confidence and enable comparisons within the sector. Companies currently issue quarterly reports based on varying financial calendars, making it difficult for analysts to compare one bank with another.
"Everyone will be standing on common ground, which makes it better to analyse banks and rank them," said Wole Famurewa, head of research at PHB Asset Management. Weak disclosure requirements in Nigeria have fuelled concerns about the health of its banks, particularly their exposure to falling capital markets after explosive balance sheet growth in recent years saw them take on higher levels of unsecured risk. Nigeria's minimal reporting standards only demand the quarterly publication of gross earnings, pre-tax profit and net profit. The stricter reporting rules will provide a clearer picture of a financial institution's balance sheet and spotlight the country's strongest and weakest banks.

OTHER NEWS