Five Banks Dominate Banking Industry

The Central Bank of Nigeria (CBN) recently said that a situation whereby five banks controlled over 50% of the industry’s market share in 2012 showed that competition was limited in the banking system.

The CBN, which stated this in its “Financial Stability Report,” posted on its website, as at December 2012 however did not disclose the identity of the five commercial banks.

Specifically, the central bank revealed that the average market share of assets and deposits of the five major banks stood at 52% and 51.07%, respectively at the end of 2012, compared to the 51.64% and 53.14% at the end of the first half of last year.

The report also showed the market share of the largest bank, with respect to assets and deposits, stood at 14.99%and 13.47%, respectively as at the end of December 2012, compared to 14.05% and 15.60% as at the end of June 2012.