Nigerian Banks Face Profit Decline from Treasury Bill Cuts

Fitch Ratings reported that Nigerian banks' 2018 profits will decline due to the Federal Government's reduced treasury bill issuance in 2018. The analysis highlights a significant drop in net T-bill issuance as observed in the first quarter's CBN calendar.

The Central Bank of Nigeria's first-quarter 2018 issuance schedule shows N1.1 trillion in rollovers versus N1.3 trillion maturing bills, representing a N200 billion shortfall in new T-bill issuance compared to 2017.

Despite these challenges, Fitch identifies larger banks as better positioned to manage the impacts, noting strong operating returns at GTB, Zenith, UBA, Access, and FBNH.

Fitch Ratings stated Nigerian banks' 2018 profits will decline from reduced federal treasury bill issuance in 2018. The report identifies a significant drop in net T-bill issuance observed in the first quarter's Central Bank of Nigeria calendar.

The Central Bank of Nigeria's first-quarter 2018 issuance schedule shows N1.1 trillion rollovers against N1.3 trillion maturing bills, indicating a N200 billion shortfall in new T-bill issuance compared to 2017.