Ibekimi Oriamaja Reports.
According to Ken Opara, President of the Chartered Institute of Bankers of Nigeria, despite the current macroeconomic challenges confronting the Nigerian economy, the financial sector has remained resilient, strong, and profitable (CIBN).
According to him, 13 Nigerian commercial banks increased their profits by 25% in the first quarter of 2022, totaling N1.54 trillion. He added that despite the CBN’s dovish monetary policy of keeping interest rates low, banks’ bottom lines improved.
Opara spoke at The Chartered Institute of Bankers of Nigeria Centre for Financial Studies and B. Adedipe Associates Limited’s second Mid-Year Review of the Economic Outlook 2022 event.
Given the numerous challenges confronting the Nigerian economy, taking a broader perspective on these issues and proposing potential solutions has become critical in order to avoid repeating historical failures.
According to him, Nigeria’s economic challenges stem from insecurity, uncertainty, political and cultural differences, with the country ranking 131st out of 190 economies in terms of ease of doing business. We are currently dealing with fuel scarcity and skyrocketing prices, as well as a national electricity grid failure that is causing frequent blackouts.
“These challenges have had an impact on businesses and livelihoods throughout the country, resulting in the demise of several business enterprises, particularly micro, small, and medium-sized enterprises (MSME), and the relocation of larger companies to other countries.
“The Nigerian economy has experienced a paradoxical situation in the last six months, in which growth prospects have improved while inflationary and fiscal pressures have increased significantly, making the economy much more vulnerable,” he said.
According to the IMF, “economic recovery continues to gain strength on the back of services and agriculture,” with GDP growth reaching 3.6 percent in the first quarter of 2022. According to the most recent data, economic growth is spreading across all sectors with the exception of oil, where production remains weak due to ongoing security and technical challenges.”
