Nigeria

Nigerian banks face higher risks due to inflation, interest rates, and currency devaluation, leading to a rise in non-performing loans (NPLs). S&P forecasts NPL ratios will drop to 3.8% in 2025, but total NPL stock is expected to increase by 14% as lending expands. Return on equity is projected to decline to 20%-25% in 2025 from 30% last year.