EnterpriseNGR lists sectors that can make Nigeria the financial hub of Africa


Banking, insurance, capital market, asset management, pensions, interest-free financing, fintech, professional services and sustainable finance are key sub-sectors likely to make Nigeria the center financial institution of Africa, according to the latest State of the Enterprise (SOE) report. .

The report unveiled on Wednesday by EnterpriseNGR, a professional advocacy group, is an annual industry publication, the first of its kind, which analyzes the supporting, facilitating and pivotal role played by the financial and professional services sector. (FPS) to support the positive development of the country. economic growth. This demonstrates the importance of the sector for the economy.

“We can only have a strong FPS when all these sub-sectors are functioning at their peak and realizing their full potential, as our vision is to transform Nigeria into the financial hub of Africa,” says Obi Ibekwe, Managing Director of ‘EnterpriseNGR.

“Each of these subsectors currently operates in silos. So we’re trying to bring them together and see those leaks and synergies that we can leverage on as a sector or as one voice so that we can talk to government and be the originators of policies around the sector” , Ibekwe said. .

She added that the government does not know everything and that as operators of the sector, we know the sector, its challenges and how to solve them.

“If we partner with them, we will have a positive impact on the economy and help achieve economic growth and prosperity that will improve the well-being of ordinary Nigerians.”

Aigboje Aig-Imoukhuede, president of EnterpriseNGR, said the report is growing in impact and influence every year.

“It is meant to establish a baseline for all of us of the real things happening in the industry. And in subsequent reports, we will look at what hasn’t been done so well and what needs to be done to do it well, not just for the professionals, but also for the nation,” Aig-Imoukhuede said.

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The report pointed out that for the banking sector, the assets of depository banks grew by 15.3% to reach N62.9 trillion, accounting for 35.7% of gross national GDP in 2021.

Financial institutions contributed 3.2% to GDP. Key challenges to facilitate future growth include: a shortage of talent, a lack of incentives for patient capital, weak competition, under-capitalization, regulatory hurdles, uneven growth, and poor diffusion of technology. innovation,” he said.

For fintech, the number of companies has grown from a few (such as Systems Spec, Interswitch, and eTranzact) in the 1990s and early 2000s to 201 to 250 in 2021. healthcare, edtech, enterprise, entertainment, logistics and insurtech were responsible for the remaining 27%.

Challenges faced in the subsector are limited to poor interoperability and lack of common data sources, shortage of talent, slow regulation, insufficient patient capital, data privacy and issues. security, a poor understanding of the user experience and a lack of funding. .

The report further indicates that to facilitate the financing of companies and investment projects, during the first three quarters of 2020, the asset management sub-sector supported the issuance of new securities valued at 2, 8 trillion naira.

“Thirty-three unit trust schemes valued at N10.3 trillion and $86.4 million (dollar funds/Eurobonds) were registered with the SEC in 2021 and 19 companies received clearance to to issue corporate bonds worth N369.8 billion.

“While the asset management subsector has great potential, it faces low levels of innovation, the influx of unregulated operators, low participation rates, challenges in the onboarding process, poor integration of financial services, talent shortages, low product diversification, non-availability of data and low use of research,” he added.

In a keynote address, Stefan Decron, Professor of Economic Policy at Oxford University, noted that when it comes to losers in economic development, Nigeria is one of them.

“It’s a fine example of the kind of country that over the past 20 to 30 years hasn’t experienced rapid economic growth compared to Indonesia, Bangladesh, India and Vietnam,” Decron said.

“The last 20 or 30 years have been the best in world history in terms of development taking off across the world. But unfortunately, Nigeria did not participate.

“He’s a loser in my language. Its low growth and stagnation did not earn it a good ranking in terms of development. It is among the first only in terms of poverty. And by 2030, it will be the country with the poorest people in the world,” he added.

The economist recommended that the country can learn lessons from China, Bangladesh and Ethiopia which are winners in the field of growth and development.

“These countries have a credible longer-term policy to maintain peace and stability, a state that is a conscious, responsible and functioning democracy.”


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