Lagos - Breaking the central bankers' taboo on the use of the
'p-word', Nigeria's Godwin Emefiele is urging people not to panic
about the banking system, saying he is on top of any trouble resulting
from the worst crisis in Africa's biggest economy for decades.


For now, depositors and investors are generally giving the Central
Bank of Nigeria Governor the benefit of the doubt after he shored up
mid-tier lender Skye Bank this month with a loan and replaced its
management when its capital fell below levels required by
regulators.


But pressure is building, with loan books - nearly half of them in
dollars - hammered by a shrinking economy, a plunging currency and
acute foreign exchange shortages, all a consequence of the slump in
the oil price for Africa's top crude producer.


Non-performing loans are expected to jump to 12.5% of total loans this
year, up from the central bank's target level of 5% at the end of last
year, as lenders suffer a hangover from an oil sector credit boom that
ended abruptly in 2015, according to Agusto & Co, Nigeria's main
rating agency.


Nigeria's 21 banks have been laying off staff, closing branches and
slashing earnings forecasts, but some are unlikely to survive the
storm, analysts say.


"It will affect their profitability initially and eventually it is
going to affect their liquidity and solvency," said Bismarck Rewane,
chief executive of Lagos-based consultancy Financial Derivatives.
"Because of the squeeze in profitability there will be a natural
consolidation and a shake out."


Any failure of the banking sector would have far-reaching consequences
in the nation of 170 million, with civil servants' pay routed through
the banks and residents of remote villages dependent on electronic
systems for routine payments.


Sterling Bank chief executive Abubakar Suleiman said in February a
naira drop of just 20% would trigger a "wave" of bank mergers. Since a
devaluation last month, the currency has lost double that against the
dollar.


Overall, 42% of loans extended by Nigerian banks are in dollars. If
the naira falls far enough, it will force some banks to recapitalise
to have enough naira to stay within financial stability limits.


"There is concern around the evolution of banks' capital adequacy if
the naira continues to weaken," said Standard Chartered Africa chief
economist Razia Khan. "As the naira weakens, FX loans are likely to be
problematic."


Delayed results
According to London-based analysts Exotix, UBA, Diamond and Guaranty
Trust Bank (GTB), which is Nigeria's biggest bank by market
capitalisation, have the highest ratio of dollar loans, at 50% apiece.
Diamond declined to comment, while UBA and GTB said they saw no need
for a recapitalisation due to the devaluation.


One Lagos-based banking analyst, who asked not to be named, said three
or four medium-sized banks might need to raise capital. The central
bank has said it is monitoring one or two lenders

for liquidity,
without naming them.


Adding to uncertainty, GTB delayed its half-year earnings this week
pending an interim audit.


Two mid-tier banks, Skye and Stanbic - the local arm of South Africa's
Standard Bank - said they had not yet released first quarter earnings.



Some banks have themselves borrowed heavily in dollars, debt that now
costs much more to service.
Top of this list is GTB, which has $1.6bn in dollar-denominated debt,
followed by First Bank of Nigeria, with $915m, according to Thomson
Reuters data. First Bank was not immediately available to comment.


Anticipating problems from a weaker naira, investors have been selling
off banking stocks for the last year, sending the banking index in
January to its lowest since it was formed in 2009, and less than half
its level in mid-2014.


Many banking stocks - hot foreign investor picks a decade ago during
an 'Africa rising' boom - remain depressed after a 2009 sector
melt-down stemming from the global financial crisis.


Zenith shares are a third of their pre-financial crisis highs, Access
a quarter, and First Bank just 10%. GTB, by contrast, has recovered as
it has one of the lowest levels of non-performing loans and its shares
are now in line with their 2008 levels.


'Don't panic'
With the IMF forecasting a 1.8 percent contraction in the economy this
year, the immediate prospects for the banking sector are grim but
Emefiele was adamant the financial system remained solid.


"The strategic health of the Nigerian banking or financial system
remains strong at this time. There is no need for anybody to begin to
panic or worry that any bank is in distress," he said after a monetary
policy meeting this week.


"Depositors of banks, please, please endure. We appeal to you: go
about your business. You will not lose your deposits in any bank."
However, his soothing words, which followed a rush by depositors to
withdraw funds from Skye earlier this month, may have the opposite
effect, especially after police in May raided three banks - Access,
Fidelity and Sterling - as part of a probe into alleged illegal
transactions.
"The moment you start saying it, it raises eyebrows - why are you
saying that?" Financial Derivatives' Rewane said.


Another problem is the lack of transparency over so-called "insider
loans" to directors and shareholders. These are often not declared in
earnings statements in a timely manner, bankers say, making a bad
picture possibly even worse.


The Nigeria Deposit Insurance Corp, an independent federal agency,
said this week it was concerned "over the increasing wave of
non-performing insider loans in various banks and its consequences for
the stability of the nation's banking systems". V.1676

One of the highlighted topics: Critical Skills Visa.

- Key Insight: Is your profession on the Critical Skills List? This visa is your fast track to working in South Afr...
- This matter relates to critical skills visa and its broader implications.
- Individuals are advised to seek professional guidance.

Is your profession on the Critical Skills List? This visa is your fast trac V.6139
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One of the applicants, Phindile Mazibuko, became a victim of identity theft in 2012 when fraudulent transactions occurred, using her personal details.

-The Pretoria High Court found that the department of home affairs had violated constitutional rights without due process.
-Only half of Lawyers for Human Rights` test group has been unblocked, while 385 000 identities remain blocked nationwide.
-LHR appeals extension, urges affected people to seek help now.

Lawyers for Human Rights (LHR) are intensifying pressure on the department of home affairs over the national ID-blocking crisis, accusing the state of acting too slowly to unblock qualifying individuals despite a landmark court ruling.

In January last year, the Pretoria High Court found that the department`s practice of blocking IDs without due process was unlawful and unconstitutional. One of the applicants, Phindile Mazibuko, a Swati citizen and South African permanent resident since 1998, fell victim to identity theft in 2012 when fraudsters used her personal details.

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The Border Management Authority (BMA) has doubled its staff at Airports in South Africa , including immigration officers.

What does this mean for travelers? V.6128
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The Border Management Authority (BMA) has doubled its staff at Airports in South Africa , including immigration officers.

What does this mean for travelers? V.6129
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A Washington state mother and her 6-year-old son have been released after spending more than three weeks in US immigration detention due to a brief trip to Canada and a small paperwork mistake, her attorney told CNN on Saturday.

Sarah Shaw, a New Zealand citizen who has lived legally in the US since she arrived in 2021, was detained at the Blaine, Washington, Customs and Border Protection checkpoint when returning home after dropping her two oldest children off at the Vancouver airport for a flight to visit their grandparents in New Zealand. Shaw, 33, chose the flight out of Vancouver because it was direct and she didn`t want her children to have to navigate a layover alone, her attorney Minda Thorward, told CNN.

 V.6130
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On 22 July 2025, the Gauteng High Court dismissed Sitrusrand Boerdery`s review of the Department of Employment and Labour`s refusal to issue a Working Conditions and Salary Benchmarking Certificate, an essential precondition for obtaining corporate visas under the Immigration Act.

Acting Judge Kekana AJ held that the Department`s decision was lawful, rational and procedurally fair. This judgment illustrates how businesses can - and must - structure their corporate visa applications to meet statutory requirements, and how legal practitioners should prepare robust review challenges when administrative authorities decline to recommend foreign-work permits.

 V.6131
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The United States could forfeit an estimated 9.4 billion dollars in visitor spending over the next three years following the introduction of a new 250 dollars `visa integrity fee,` according to industry groups, who warn the policy risks undermining tourism and costing thousands of jobs.
The United States’ decision to introduce a 250 dollars `visa integrity fee` on international visitors has triggered sharp criticism from the global tourism industry, with officials warning that the measure could deter millions of travellers and cost the U.S. economy billions.
The 250dollar `visa integrity fee,` part of the One Big Beautiful Bill Act signed on July 4, 2025, will take effect later this year. According to immigration law firm Envoy Global, it applies to all nonimmigrant visa holders which include students, tourists, temporary workers, and business visitors particularly from African countries. V.6132
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The Border Management Authority (BMA) has doubled its staff at Airports in South Africa , including immigration officers.

What does this mean for travelers? V.6127
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1. Right to Legal Representation•You have the right to consult with a legal representative.•Contact an immigration practitioner, legal aid clinic, or attorney urgently.•Do not sign any documents without understanding them fully. 2. Section 34 of the Immigration Act•You must be brought to court with 48 hours to confirm arrest but you can remain locked up very long as courts figure out what to do with you •If you`re found to be illegally in South Africa, you may be detained for up to 30 days (extendable by a magistrate) pending deportation.•BUT this cannot happen arbitrarily. You must be informed of your rights, and Home Affairs must follow due process.- becomes a nightmare , you could lose your job , business , place to stay V.6121
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Driving for Bolt, Uber, Mr D, or Checkers Sixty60?If you`re undocumented, you`re risking more than just your income.The Risks if You`re Not Legal: - Vehicle impoundment - Heavy fines - Arrest & deportation - Permanent bans from working in SA V.6122
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