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Is the pace of Nigerian credit growth a cause for concern?

After Nigeria’s banking crisis of 2008/09, some commentators are starting to voice fresh concerns about the recent rapid pace of growth in private sector credit. But while we share some of these concerns, it seems that the pace of credit growth is being artificially inflated by one-off factors. Coupled with a low loan-to-deposit ratio, this suggests that the worst fears are overdone.

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