<- Back

Nigeria’s Banking Sector: Thriving in the face crisis


Mckinsey & Company

An overview on the Nigerian banking sector during and after the pandemic


Financial services

The article highlights the resilience of Nigeria's banking sector despite economic challenges such as the 2014 oil-price crash, the 2016 recession, and the COVID-19 pandemic. The sector has demonstrated strong performance, with revenues growing by 12% annually from 2014 to 2019, and a return on equity (ROE) of 22% in 2019. The banks have also embraced digital transformation, and expanding financial inclusion presents further growth opportunities.

The Key figures

  1. Revenue growth: Nigerian banks' revenues grew by 12% annually from 2014 to 2019.
  2. Return on equity (ROE): The sector's ROE stood at 22% in 2019, outperforming the global average.
  3. Digital customers: The number of active digital customers more than doubled between 2016 and 2019.
  4. Capital adequacy ratios: Nigerian banks have maintained capital adequacy ratios above the regulatory requirements throughout the crises.

These figures demonstrate the resilience, growth, and digital transformation of Nigeria's banking sector despite the economic challenges faced by the country.