Naira slide may trigger loan defaults, squeeze businesses – Financial expert warns

A fiscal expert, Busari Akande, has warned that the naira's depreciation could summation indebtedness defaults, weaken concern operations and restrict entree to recognition successful Nigeria.

Akande, a Fellow of the Institute of Credit Administration, FICA, said the naira's continual diminution astatine the Nigerian Autonomous Foreign Exchange Market, NAFEM, astatine the opening of November could person wider implications for businesses and the banking sector.

He said though the 0.12 per cent regular depreciation mightiness look insignificant, its effects could compound existing fiscal pressures connected businesses already struggling with precocious borrowing costs and rising operational expenses.

In an investigation titled "Unmasking the Naira's November Shuffle: A Dual Lens connected Credit Risk and Financial Resilience", Akande explained that import-dependent companies, peculiarly those successful manufacturing and user goods, could look higher earthy worldly costs and shrinking nett margins.

He warned that the concern could undermine companies' quality to repay loans, forcing immoderate to seek...