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No crisis in Nigeria's banking sector -Central Bank of Nigeria

No crisis in Nigeria's banking sector -Central Bank of Nigeria

Nigeria’s Central Bank has played down fears of a banking crisis in the country.

In a statement, the bank further went ahead to dismiss suggestions that some banks in the country were in trouble.

“The CBN wishes to reiterate in the strongest terms that these rumours and speculations are untrue and do not reflect the actual health of the individual banks and, indeed,the entire banking industry,” the statement said.

The CBN wishes to reiterate in the strongest terms that these rumours and speculations are untrue and do not reflect the actual health of the individual banks and, indeed,the entire banking industry

Jitters emerged after top executives of Nigeria’s eighth biggest lender, Skye Bank resigned on Monday. But, other reports indicate that they were replaced by the Central Bank.

Godwin Emifiele, the bank’s governor however reiterated that Skye Bank was not in distress and could still conduct banking activities.

He also added that none of the countries 21 commercial banks were in distress.

Africa’s largest economy which relies on oil sales for 70 percent of government revenues, is in financial crisis due to sustained low oil prices over the last two years.

Banks in the country have been feeling the pinch of the oil sector slump give that they lend about 26 % of their loans to oil and gas companies.

Last month, the central bank allowed the naira to float for the first time after sustained weakening against the dollar, causing a shortage in foreign exchange needed for key imports.