Fintechs to push financial services sector growth 8.32% —Rewane

The Nigerian financial services sector will grow by 8.32% in 2022, according to Mr. Bismarck Rewane, Managing Director/Managing Director of Financial Derivatives Company.

Rewane, the keynote speaker at the Nigerian Economic Outlook 2022 webinar hosted by First Bank of Nigeria Ltd. Thursday in Lagos, articulated the forecast for increased partnership and collaborations by Financial Technologies (Fintechs) in promoting financial inclusion.

Rewane added that there would be rationalization and drift within the sector, pointing out that Tier 1 banks would benefit from their strong customer base and the size of their balance sheets.

He said there would be aggressive digital innovation and lending solutions as well as possible mergers and acquisitions within and across tiers to strengthen the capital structure.

Rewane said the manufacturing sector is likely to grow by 4.70% in 2022.

He predicted that improved currency liquidity and increased product innovation would drive the industry’s growth.

“Players would benefit from growth in volume and value. The major players (Nestle Nigeria and Unilever) will see 20% profit growth in 2022.

“The agricultural sector is expected to grow by 1.6% in 2022, an efficient rail system will ease logistical constraints and boost productivity,” he said.

Rewane added that the ICT industry is likely to grow by 9.72% in 2022 with phone penetration rising.

“There will be an increase in Fintech and mobile payments, while increased levels of activity will be supported by 5G operations, the sector will consolidate in the year,” he said.

According to him, the telecommunications infrastructure will develop with the acquisition of cable.

Rewane noted that the country’s economic performance would be largely determined by the successful implementation of the 2022 budget and the recently approved five-year development plan.

He explained that lower inflation would be positive for consumers’ purchasing power, adding that monetary tightening in advanced economies could trigger capital outflows.

He also said the price of oil would remain relatively stable, adding that real gross domestic product (GDP) growth would be sublime.

According to him, in 2022, competition between traditional banks and Fintechs will intensify, while banks with constant innovation and regional diversification will remain resilient.

He further noted that reform could be hampered by political considerations and trade union activities during the year, saying insecurity could prove difficult to contain and would become a political campaign tool for the opposition.

Rewane also said that the Central Bank of Nigeria (CBN) would likely increase the supply of currencies to manufacturers to ease currency pressures.

He pointed out that pre-election spending would be positive for aggregate demand and would also boost business performance.

Regarding the exchange rate outlook, he said the CBN is likely to step up its efforts towards exchange rate convergence.

He also noted that political jitters would increase foreign demand pressures in the fourth quarter of the year.

On the risk matrix in 2022, he listed policy reversal and delayed reforms, escalating social unrest spurred by high levels of unemployment and poverty, and financial sector crisis, among others, as elements to be addressed. to watch.

Earlier in his opening remarks, FirstBank Managing Director Dr. Adesola Adeduntan said the webinar provided an opportunity to assess the performance of the Nigerian economy across key indices in 2021 and benefit from expert opinion on expectations and forecasts for 2022.

Adeduntan said it would also provide great insights into the key factors shaping both the global and local economic landscape in 2022.

He noted that in 2021, global production has rebounded and the recovery has been strong thanks to improved immunization efforts, as well as support from monetary and fiscal authorities.

According to him, the fourth wave of the omicron variant of COVID-19 has created a certain level of caution, impacting activities in the fourth quarter of 2021 and leading to the push for booster shots and the reinstatement of COVID-19 protocols. 19.

Adeduntan said specific key lessons can be learned from economic and related activities in 2021.

He noted that these lessons and other events expected in 2022 were essential ingredients in the bank’s esteemed customer and stakeholder planning processes.

“As a bank, we have a history of supporting business growth as an engine of economic growth and development in Nigeria and across sub-Saharan Africa.

“In line with our renewed vision to be Africa’s bank of first choice, FirstBank will take the lead in driving the development of different sectors and industries within the economies where we operate to support overall economic growth and sustainability.

“As a bank woven into the fabric of society, this webinar further strengthens our support and collaboration with stakeholders as we demonstrate our commitment and drive to be our customers’ partner of choice.” he declared.

Adeduntan hoped that by the end of the webinar, attendees would have gained valuable insights into global and local economic direction. He said attendees will also understand how to strategically position their businesses and personal endeavors to capitalize on opportunities as they arise throughout the year.

Stephen V. Lee