Financial Services

Both Nigeria’s banking system and capital markets have seen significant changes over the course of recent years. Indeed, measures implemented in 2020 to restructure loans, enhance oversight and boost accountability are expected to create stronger sector players in the longer term. Meanwhile, an ongoing focus on financial inclusion has led to the emergence of new segments, including non-interest finance, microbanks, bancassurance and payment service banks. However, the economic effects of the Covid-19 pandemic are still expected to affect the banking system in the short term, including loan quality, profitability and currency stability. Even so, the Central Bank of Nigeria has identified banks as key players in a sustainable recovery due to their ability to strategically allocate credit to fuel widespread growth. Meanwhile, continued steps towards demutualisation and the launch of the Growth Board in 2020 will make the Nigerian Stock Exchange more competitive. The wider investment landscape is also set to benefit from ongoing efforts to bolster financial inclusion and promote awareness of the advantages of capital markets as an alternative to conventional banking when it comes to funding business expansion and growing and preserving individual wealth.

This chapter contains an interview with Samaila Zubairu, CEO of Africa Finance Corporation.