Investors remain wary on Nigeria’s banks

Investors remain wary on Nigeria’s banks

Returns at Nigeria's top banks are running at levels that their European counterparts can only dream of, and the country's biggest lenders are eyeing up an opportunity from the 60m citizens without bank accounts. 

But according to Ronak Gadhia, an analyst for investment bank EFG-Hermes, the pool of investors who want to own Nigerian lenders is shrinking. "There used to be quite a few supporters,“ he says. "Now, it's very hard to get a client to pick up when you are calling to discuss Nigerian banks.“

Some investors are averse because of wider conditions in Nigeria. The country's currency value is volatile, with a central bank that props up the naira, before sudden devaluations, as happened in March and July. Nigeria has currency controls, adding to investors' concerns about