Fitch Says Nigerian Credit Growth May Weaken Assets

(Corrects percentage of credit growth in second paragraph.)

A rapid growth in credit by Nigerian lenders may weaken the quality of their assets and lead to increased impairment charges unless curbed, Fitch Ratings said.

While the quality of assets held by banks improved in 2011, a “rapid underlying credit growth of 30 percent-66 percent was evident in most of the Fitch-rated banks” and may become “a negative credit driver if it continues,” the agency said today in an e-mailed statement.

To contact the reporter on this story: Dulue Mbachu in Abuja at dmbachu@bloomberg.net

To contact the editor responsible for this story: Dulue Mbachu at dmbachu@bloomberg.net