Afrinvest West Africa Restricted will probably be unveiling the 2023 Nigerian Banking Sector Report in Lagos on Tuesday, November 14, 2023.
The report, with the theme, ‘Getting Nigeria to Work Once more!’ will probably be unveiled by midday on the Civic Centre, Victoria Island, Lagos.
The occasion will appeal to dignitaries from personal and public sectors, market leaders and stakeholders within the monetary sector, who will talk about key points essential to get the nation’s financial system return to path of development.
The Particular Visitor of Honour, Minister of Finance and Coordinating Minister of the Financial system, Mr Wale Edun, will use the chance to current steps being taken by the federal government to stabilise key segments of the financial system.
Panellists for the occasion embrace Founder/Chief Government Officer, Outsource International, Amal Hassan; Chief Government Officer, Pinnacle Oil & Gasoline, Robert Dickerman; Co-founder/Chief Operations Officer, Piggyvest, Odunayo Eweniyi; Head of Service, Edo State Authorities, Anthony Okungbowa and Director, Company Affairs, TGI Group, Sadiq Kassim.
The yearly report, which has, for years, formed the course of market developments and given clear steerage to home and international traders on the state of the financial system, will, this yr, present the identical benefit to monetary market gamers and financial managers.
Managing Director, Afrinvest West Africa Restricted, Ike Chioke, stated the report would supply perception on international financial overview and outlook, international financial coverage overview and outlook, international banking sector efficiency and outlook, evolving tendencies within the international banking trade and home macroeconomic overview and outlook.
Points will revolve round home foreign exchange market efficiency and indicators, worth stability, perception on the strategic agenda for the brand new Central Financial institution of Nigeria Governor.
“As the brand new CBN management takes over, Nigerians and the banking trade are looking out for a optimistic and well timed turnaround of stifling banking laws and main financial indices – change fee, inflation fee, and International Portfolio Funding & International Direct Funding flows,” the report stated.
It additionally offers highlights of the 2022 Nigerian Banking Sector report themed ‘Brace for Affect’, which coincided with the onset of contemporary international dangers because the receding Covid-19 pandemic left deep footprints.
“This evolution of dangers shifted focus from economy-stimulating insurance policies to the introduction of guard rails for overheating economies.
Particularly, the emergency adoption of the Fashionable Financial Principle playbook in response to the pandemic dovetailed right into a glut of economic liquidity. Though the broad stimulus deterred extended international recession, the absence of a commensurate productiveness increase drove actual and monetary sector costs larger and threatened actual output restoration,” it stated.
It defined that the central banks had since launched into historic coverage normalisation and disinflation campaigns which – as concept predicts – curtail financial institution credit score creation, constrain capital funding, and drag shopper spending.
Past 2023, the report defined that the prevailing macroeconomic headwinds of elevated costs, higher-for-longer rate of interest, forex volatility and escalating debt disaster portend systemic danger to the worldwide banking and monetary sector.
It gave insights on what’s going to play out within the debt market and the way it will have an effect on the central banks and economies of debt-prone nations.
Already, greater than $5tn of world company debt will mature in 2024, primarily based on Worldwide Financial Fund reporting, requiring refinancing at considerably elevated rates of interest. Banks can not afford materials improve in dangerous loans, as they’ve sizable unrealised losses on disappointing non-loan property.
“Central banks have their fingers full; the growing debt burden on governments as a result of tight monetary markets would require some debt monetisation, and financial bailouts won’t be expansive sufficient to cowl troubled banks. Therefore, we anticipate crucial revisions to international banking tips ought to the tightening cycle persist,” it stated.
It famous that over the past 12 months to September 2023, CBN’s laws have largely centered on enhancing the working surroundings for banks and OFIs according to altering international dynamics, incentivising monetary providers integration, and restoring sanity within the post-botched Naira redesigned coverage implementation.
“To our thoughts, the potential beneficial properties from these strikes would solely crystallise if main FX influx sources – crude oil gross sales, capital importation, and diaspora remittance – are enhanced by supportive fiscal and financial insurance policies that may incentivise new funding within the oil & fuel sector, restore international traders’ confidence, and encourage extra capital repatriation by the Diaspora,” it stated.
The report additionally offered a approach out of present financial difficulties confronted by each authorities and a few personal sector operators particularly with the continued acute greenback crunch.
“Within the meantime, we canvass that the authorities double down on efforts to test insecurity, curb oil theft, tame inflation, anchor market yield on MPR, and enhance the enterprise surroundings. Additionally, we consider that the sustained excessive demand for FX within the parallel market because of lingering weak provide within the official market, coupled with inefficient processing time, would proceed to undermine the target of those measures. As regards the influence of the measures on the banking trade, we anticipate the re- introduction of the prepared purchaser, prepared vendor mannequin to assist a modest optimistic upside for the FX transaction earnings of banks going ahead,” the reported.
The report additionally highlighted the necessity for the brand new CBN management to be geared in direction of reversing the unorthodox coverage measures of the final administration, restoring market confidence within the CBN’s autonomy, and prioritising the core objectives of worth and change fee stability.
“Nonetheless, we consider that attaining all of those in a short-term can be a herculean process, provided that complementary fiscal coverage actions are required for the CBN to file beneficial properties,” it stated.