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Afrinvest to unveil 2023 Nigerian banking sector report today
Afrinvest West Africa Limited will be unveiling the 2023 Nigerian Banking Sector Report in Lagos today.
The report, with the theme, ‘Getting Nigeria to Work Again!’ will be unveiled by noon at the Civic Centre, Victoria Island, Lagos.
The event will attract dignitaries from private and public sectors, market leaders and stakeholders in the financial sector, who will discuss key issues necessary to get the country’s economy back to the path of growth.
The Special Guest of Honour, Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, will use the opportunity to present steps being taken by the government to stabilise key segments of the economy.
Panellists for the event include Founder/Chief Executive Officer, Outsource Global, Amal Hassan; Chief Executive Officer, Pinnacle Oil & Gas, Robert Dickerman; Co-founder/Chief Operations Officer, Piggyvest, Odunayo Eweniyi; Head of Service, Edo State Government, Anthony Okungbowa and Director, Corporate Affairs, TGI Group, Sadiq Kassim.
The yearly report, which has, for years, shaped the direction of market developments and given clear guidance to domestic and foreign investors on the state of the economy, will, this year, provide the same advantage to financial market players and economic managers.
Managing Director, Afrinvest West Africa Limited, Ike Chioke, said the report would provide insight on global economic review and outlook, global monetary policy review and outlook, global banking sector performance and outlook, evolving trends in the global banking industry and domestic macroeconomic review and outlook.
Issues will revolve around domestic forex market performance and indicators, price stability, insight on the strategic agenda for the new Central Bank of Nigeria Governor.
“As the new CBN leadership takes over, Nigerians and the banking industry are on the lookout for a positive and timely turnaround of stifling banking regulations and major monetary indices – exchange rate, inflation rate, and Foreign Portfolio Investment & Foreign Direct Investment flows,” the report said.
It also provides highlights of the 2022 Nigerian Banking Sector report themed ‘Brace for Impact,’ which coincided with the onset of fresh global risks as the receding COVID-19 pandemic left deep footprints.
“This evolution of risks shifted focus from economy-stimulating policies to the introduction of guard rails for overheating economies.
“Specifically, the emergency adoption of the Modern Monetary Theory playbook in response to the pandemic dovetailed into a glut of financial liquidity. Although the broad stimulus deterred prolonged global recession, the absence of a commensurate productivity boost drove real and financial sector prices higher and threatened real output recovery,” it said.
It explained that the central banks had since embarked on historic policy normalisation and disinflation campaigns which – as theory predicts – curtail bank credit creation, constrain capital investment, and drag consumer spending.
Beyond 2023, the report explained that the prevailing macroeconomic headwinds of elevated prices, higher-for-longer interest rate, currency volatility and escalating debt crisis portend systemic risk to the global banking and financial sector.
It gave insights on what will play out in the debt market and how it will affect the central banks and economies of debt-prone nations.
Already, more than $5trillion of global corporate debt will mature in 2024, based on International Monetary Fund reporting, requiring refinancing at significantly elevated interest rates. Banks cannot afford material increase in bad loans, as they have sizable unrealised losses on disappointing non-loan assets.
“Central banks have their hands full; the increasing debt burden on governments due to the tight financial markets would require some debt monetisation, and fiscal bailouts might not be expansive enough to cover troubled banks. Hence, we anticipate critical revisions to global banking guidelines should the tightening cycle persist,” it said.
It noted that over the last 12 months to September 2023, CBN’s regulations have largely focused on improving the operating environment for banks and OFIs in line with changing global dynamics, incentivising financial services integration, and restoring sanity in the post-botched Naira redesigned policy implementation.
“To our mind, the potential gains from these moves would only crystallise if major FX inflow sources – crude oil sales, capital importation, and diaspora remittance – are enhanced by supportive fiscal and monetary policies that would incentivise new investment in the oil & gas sector, restore foreign investors’ confidence, and encourage more capital repatriation by the Diaspora,” it said.
The report also provided a way out of current economic difficulties faced by both government and some private sector operators especially with the ongoing acute dollar crunch.
“In the meantime, we canvass that the authorities double down on efforts to check insecurity, curb oil theft, tame inflation, anchor market yield on MPR, and improve the business environment. Also, we believe that the sustained high demand for FX in the parallel market due to lingering weak supply in the official market, coupled with inefficient processing time, would continue to undermine the objective of these measures. As regards the impact of the measures on the banking industry, we expect the re- introduction of the willing buyer, willing seller model to support a modest positive upside for the FX transaction income of banks going forward,” the report read.
The report also highlighted the need for the new CBN leadership to be geared towards reversing the unorthodox policy measures of the last administration, restoring market confidence in the CBN’s autonomy, and prioritising the core goals of price and exchange rate stability.
“Nonetheless, we believe that achieving all of these in a short-term would be a herculean task, given that complementary fiscal policy actions are required for the CBN to record gains,” it said.
By Atondu Titus
Benue State Governor, Rev. Fr. Dr. Hyacinth Iormem Alia, has assured the people of Ukum Local Government Area in the Sankera axis that normalcy will soon return to the area, following an incident involving criminal elements on Wednesday.
The Governor, represented by his deputy, Barr. Dr. Sam Ode, condemned the actions as “barbaric” and reiterated that the government will not tolerate anything less than peace and security of lives and properties.
“We are committed to ensuring that peace and normalcy return to this area. The curfew imposed on the area from 6pm to 6am daily will remain in place until further notice,” Governor Alia said.
The Police Commissioner, Mr. Hassan Steve Yabanet, also reassured residents that normalcy has returned to the area, saying, “We are on top of the situation.”
The Governor’s visit to Ukum was seen as a move to show solidarity with the affected communities and to reiterate the government’s commitment to ensuring that justice is served. During the tour, the Governor’s delegation visited several locations, including Ukum Local Government Secretariat, INEC office, Government College Zaki Biam, Benue State High Court, Benue Links Park, St Paul Nursery Primary and Secondary School, Magistrate.
Odu’a Investment Company Ltd., (OICL) and the Nigerian Philanthropy Office have concluded plans to sign a Memorandum of Understanding (MoU) to provide grants to spur industrialisation in the South-West Zone.
Group Chairman, Odua Investment Company Ltd., Chief Bimbo Ashiru, confirmed this in an interview on Thursday in Lagos.
Ashiru spoke on the sidelines of a meeting between the Board/Management of OICL and the Nigerian Philanthropy Office team, under the office of the Vice President, to discuss areas of partnership and collaboration between the duo.
He said the project, designed to cater for between 500 and 1,000 persons, was geared towards growing businesses, alleviating poverty, promoting agriculture and education.
According to him, the parties will sign the MoU on the partnership tentatively by July 15 to guarantee OICL take ownership of the project in the South-West Zone.
Ashiru said that the amount of the fund for the grant was still under discussion and would be announced when finalised.
The chairman explained that the South-West Governors, who are proprietors of Odu’a Investment, are involved in the project, while OICL was the initiative’s flagship company.
“The collaboration between the parties would spread across several areas, but particularly, to support businesses of the Micro, Small and Medium Enterprises (MSMEs), Agriculture and Education that will lead to industrialisation.
“We have so many companies, banks, that are partners too on the project, but Odu’a is the flagship for the South-West Zone, while there are other companies for the South-East and the North.
“MSMEs are the drivers of any economy in the world; they are about 90 per cent, while the multinationals are just about 10 per cent.
“They create about 90 per cent of jobs across the world, but have problems with funding; this partnership is geared towards addressing the problem and alleviating poverty,” he said.
According to Ashiru, if the Government focuses on such empowerment, it will reduce the level of poverty and create more jobs.
He expressed the willingness of the parties to ensure that everybody that was qualified benefited from the initiative, hence, the ongoing fine tuning of the MoU before finally signing.
Ashiru said, “We will ensure that people that are qualified get the fund and the right calibre of people are put at the helm of affairs of the project.
“That is why the Government is not handling it, so that people with vested interest will not hijack it.
“The most important thing in the area of Philanthropy is to have direct impact and be sustainable, and that we will ensure.
News
Economic hardship: Again, FG shares palliatives, releases 44,656 bags of food items to Abuja residents
…Food palliatives to target most vulnerable Nigerians — Minister
The Federal Government has released 44,656 bags of assorted food items to residents of Abuja, the nation’s capital, as palliatives to address the soaring food prices and scarcity in the country.
The gesture is in line with the Renewed Hope Agenda of the President Bola Tinubu administration.
Speaking at the flag-off ceremony in Gwagwalada on Thursday, Minister of State in the FCT, Dr Mariya Mahmoud, said, “This gesture is aimed at addressing the biting food shortages and bringing relief and succour to Nigerians.
“We are committed to alleviating the burden of food scarcity and high cost of food items on Nigerians, particularly the most vulnerable who are worst affected by the situation.”
The Minister commended the federal government for the gesture, which she said would go a long way in alleviating the suffering of Nigerians. She also appealed to residents to conduct themselves in a responsible and orderly manner during the distribution exercise.
Earlier, the Mandate Secretary, Agriculture and Rural Development Secretariat, Lawan Kolo Geidam, commended President Tinubu for his visionary leadership and foresight in addressing the rising cost of foodstuffs.
Geidam said, “We have perfected plans with the area council authorities to develop a meticulous distribution plan that would ensure an efficient exercise, making sure that the food items reach the targeted groups.”
The identified groups include the six area councils, Joint Union Action Committee (JUAC), Faith Based Organisations (JNI & CAN), and the 17 graded chiefs. Others include Civil Society Organisations (CSOs), all widow groups in FCT, all orphanages in FCT, groups of persons with disabilities in the FCT, Leprosy colony residents, Bwari rehabilitation home, Wako Orphanage, and IDP camps.
Geidam added that the secretariat will follow-up the exercise by delivering the items to the area councils, ensuring that the items reach the most vulnerable members of the community.
This intervention comes after the federal government’s previous efforts to address food scarcity and high prices, including the release of 23,996 bags of 25 kg rice from the Federal Ministry of Agriculture and Food Security.
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