S&P Global Ratings maintained Nigeria's banking sector in 'Group 10' under its Banking Industry Country Risk Assessment (BICRA), with an economic risk score of '10' and an industry risk score of '9'. The BICRA framework evaluates global banking systems based on economic and industry risks facing the banking sector, with 'Group 10' including the riskiest banking sectors. Other countries in BICRA's 'Group 10' include Belarus, Greece and Ukraine. The agency indicated that Nigeria's economic risk score reflects its "extremely high risks" in economic resilience and credit risk in the economy, as well as its ''high risks'' in economic imbalances. It noted that Nigeria's economy is constrained by its low level of wealth, weak growth, high reliance on the oil and gas sector as a source of foreign currency, weak governance and rule of law, as well as high credit losses in the banking sector. It forecast nominal credit growth at 5% in 2018 and at about 8% to 10% in the 2019-20 period. Further, S&P pointed out that the industry score reflects the country's "extremely high risks" in its institutional framework and in its system-wide funding, and "intermediate risks" in its competitive dynamics. It said that the industry risk assessment is based on the sector's weak regulatory oversight and moderate risk appetite, as well as on the vulnerability of the banks' funding to foreign currency outflows. S&P indicated that the trends for economic risks and industry risks are ''stable''. It expected the banking sector to be resilient during the next 12 months. 
Source: S&P Global Ratings