New lending drive to be mapped out in 2017 report on Nigeria
• Coronation Merchant Bank signs first-time MoU with Oxford Business Group
The growing role earmarked for Nigeria’s banks in boosting private sector credit will be explored in a report out soon by the global research and consultancy firm Oxford Business Group (OBG).
The Report: Nigeria 2017 will look in detail at the drive to encourage banks to increase lending for the country’s small and medium-sized enterprises (SMEs), which make up 96 per cent of the country’s businesses and account for about 50 per cent of GDP.
OBG’s report will also consider the impact on Nigeria’s lenders of the current challenging macroeconomic conditions, in particular, the falling naira and a shift in the government’s fiscal policy. The central bank’s decision to sharpen its focus on risk management and what it means for financial institutions is also analysed.
Coronation Merchant Bank has signed a first-time memorandum of understanding (MoU) with OBG for its forthcoming publication. Under the two-year MoU, the firm will team up with OBG to analyse the latest developments in investment banking for The Report: Nigeria 2017.
OBG and Coronation Merchant Bank will produce a shared analysis titled ‘Harnessing the power of FINTECH in the development of Nigeria Capital Market’. The analysis will be part of The Report: Nigeria 2017 and will focus on the ever growing importance of FINTECH in the country.
Abubakar Jimoh, CEO, Coronation Merchant Bank, said he was delighted to be working with OBG’s team on its forthcoming analysis of Nigeria’s economy, which, he noted, came at a time when new trends in lending patterns were emerging across the industry.
“A national move to facilitate lending to smaller-scale businesses is gaining ground, in line with broader efforts to support the many entrepreneurs who have found credit hard to come by,” he said. “With a fast paced, results driven, innovative organisation and the financial technology segment keen to play a part in credit expansion, there will be much of interest to explore in this exciting new collaboration with Oxford Business Group’s team.”
Diana Rus, OBG’s country director, said she was thrilled to have Coronation Merchant Bank on board for the group’s 2017 project, which, she said, would look at both the opportunities emerging in Nigeria’s banking sector and the hurdles that lenders face.
“While Nigeria benefits from a well established banking sector, low oil prices, tight capital controls and currency fluctuations have weighed heavily on lenders and continue to influence their decisions, with lending growth flat in 2016,” she said. “Coronation Merchant Bank’s input will give us added insight as we explore the balancing act that the industry faces in supporting SME growth while managing loan performance. I’m thrilled that we will benefit from its team’s contribution on this and other important issues.”
The Report: Nigeria 2017 will be a vital guide to the many facets of the country, including its macroeconomics, infrastructure, banking and other sectoral developments. The publication will also contain contributions from leading representatives, including Audu Ogbeh, the minister of agriculture, and Okechukwu E. Enelamah, the minister of industry. The report will be available in print and online.