Fitch Ratings has warned that Nigerian banks are particularly exposed to climate-related risks due to the heavy concentration of their loan books in the oil, gas, and agriculture sectors.
The ratings agency highlighted that these industries are inherently sensitive to environmental shifts, creating a structural vulnerability for lenders operating in Africa's largest economy.
The warning arrives as Nigerian banking stocks face ongoing selling pressure.
Market participants have been cautious, with recent dips viewed by some as potential contrarian entry points despite persistent sector weakness.
The Fitch assessment adds a fundamental layer of risk to the technical sell-off, suggesting that climate transition risks could weigh on asset quality in the medium term.
This development compounds existing macroeconomic headwinds for the sector.