Banking
From The Report: Nigeria 2019
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Nigeria’s banking sector is a diversified one, in which the largest banks follow the universal banking model and a range of specialised actors tap specific niches. New trends include merchant banks, sector-specific lending vehicles, and from policymakers, increased focus on financial inclusion. These include microfinance, mobile tools, and the establishment of a network of mobile money agents to service this developing financial infrastructure. For now, however, the banking sector features a slate of risks that leaves banks reluctant to lend to the private sector, and economic actors of most types suffer from inadequate access to finance. Despite this, overall performance is not expected to slide due to the counteracting improvements in the economy. This chapter contains interviews with Godwin Emefiele, Governor, Central Bank of Nigeria; Abubakar Jimoh, Managing Director and CEO, Coronation Merchant Bank; and Emeka Emuwa, CEO, Union Bank.

Articles from this Chapter

Overview

Enhanced financial inclusion: A sector-wide debate is taking place about how best to bring more customers into the fold and reach the unbanked
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Nigeria’s banking sector is a diversified one, in which the largest banks follow the universal banking model and a range of specialised actors tap specific niches within Africa’s largest economy. New trends include merchant banks, sector-specific lending vehicles, and from policymakers, increased focus on financial inclusion. These include microfinance, mobile tools, and the establishment of a network of mobile money agents to service this developing financial infrastructure. For now, however,…

Interview

Strong roots: Godwin Emefiele, Governor, Central Bank of Nigeria (CBN), on supporting smallholders, and growing small and medium-sized enterprises (SMEs) in order to boost the economy
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Interview :Godwin Emefiele How have Nigeria’s monetary policies succeeded in boosting the economy since the recession? GODWIN EMEFIELE: The decline in export earnings due to the falling oil prices that started in late 2015 significantly impacted GDP growth, causing inflation to rise to over 18% in January 2017 and external reserves to fall to a low of $23bn in October 2016. In response to these challenges, the CBN implemented a series of measures to boost economic activity. The monetary…

Analysis

Expanding reach: The sector is looking to telecoms firms to help achieve its financial inclusion goals for 2020
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Financial inclusion remains one of the biggest challenges for Nigeria’s banking sector, with companies, public bodies and international specialists all investigating ways to bring more people into the formal sector. The target for the Central Bank of Nigeria (CBN) is an 80% inclusion rate by 2020, up from 41.6% in 2016. Most of the debate so far has been focused on mobile money platforms. These have given people a chance to access basic financial services via a smartphone or basic handset, using…

Interview

Eye on the prize: Abubakar Jimoh, Managing Director and CEO, Coronation Merchant Bank, on industry, technology and asset opportunities
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Interview : Abubakar Jimoh How has the merchant banking segment developed since the 2013 universal banking licence review? ABUBAKAR JIMOH: This policy action, which classified banks into commercial banks, merchant banks and specialised banks, led to the rebirth of merchant banking in Nigeria. At present, the number of merchant banks in the country has increased to five, with total assets of about N600bn ($1.9bn). Since 2013 local merchant banks have led and participated in several landmark transactions,…

Analysis

Interest in assets: Portfolio investment drives foreign capital inflows
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Foreign portfolio investment (FPI) has risen to become the main growth driver of capital inflows to Nigeria. Supported by strong expansion in money market instruments and bonds, FPI inflows recorded double-digit growth in both 2017 and the first half of 2018. While this suggests there is positive investor sentiment and confidence in Nigeria’s ongoing macroeconomic recovery, FPI outflows have also risen sharply in the equity market in recent months, pushing the net FPI position into deficit. Furthermore,…

Interview

Financial evolution: Emeka Emuwa, CEO, Union Bank, on financial inclusion, and access to credit for small and medium-sized enterprises (SMEs)
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Interview : Emeka Emuwa In what ways has the recession impacted the Nigerian banking environment? EMEKA EMUWA: The recession has meant two very difficult years in every industry in Nigeria. The impact was felt first by customers and then by banks, with significant increases in the number of non-performing loans. The industry was affected differently across sectors, with bigger impacts in the oil and gas, and power sectors. Nobody was insulated from the effects of the recession. This has carried…

Overview

Fintech revolution: Tech solutions are driving the evolution of the sector landscape
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Once reserved for ambitious start-ups and industry-leading tech operators, financial technology (fintech) has more recently caught the attention of major private sector firms and government planners alike, becoming a regular feature in budget speeches and strategic development plans. As fintech progressively plays a larger part in the lives of consumers, investors have quickly come to recognise its potential as a growth industry. The tech-focused Janus Henderson Global Technology Fund, for example, has expanded by more than 160% since February 2013, and grew by some 30% over the course of 2017. Fintech is rapidly advancing across an array of…

Overview

Fintech revolution: Tech solutions are driving the evolution of the sector landscape
OBG
plus

Once reserved for ambitious start-ups and industry-leading tech operators, financial technology (fintech) has more recently caught the attention of major private sector firms and government planners alike, becoming a regular feature in budget speeches and strategic development plans. As fintech progressively plays a larger part in the lives of consumers, investors have quickly come to recognise its potential as a growth industry. The tech-focused Janus Henderson Global Technology Fund, for example, has expanded by more than 160% since February 2013, and grew by some 30% over the course of 2017. Fintech is rapidly advancing across an array of…