EnterpriseNGR: Nigeria's financial & professional services shows resilience

Nigeria's financial and professional services sectors have demonstrated remarkable resilience in the face of socio-economic challenges, as highlighted in EnterpriseNGR's State of Enterprise Report for 2023. The report, presented by CEO Obi Ibekwe, delves into the performance of key sub-sectors such as banking, insurance, capital markets, asset management, and more. One of the key themes that emerged from the interview is the pivotal role played by the financial and professional services sector in driving economic development. Ibekwe emphasized that this sector is the lifeblood of any economy and serves as a catalyst for growth across various industries. Despite the turbulent macro environment and major economic reforms implemented by the new administration, the sector has shown significant growth and resilience. Key Points: 1. Banking: The banking sector emerged as a major contributor to Nigeria's GDP, accounting for 4.6% in 2023. With an asset base of approximately 121 trillion Naira, equivalent to half of the country's GDP, banks have played a crucial role in supporting businesses and facilitating large-scale transactions. The ongoing recapitalization exercise is expected to further strengthen the sector and drive consolidation, leading to a more robust financial landscape. 2. Capital Markets: Nigeria's capital markets experienced substantial growth in 2023, with the all shares index expanding by 46% and market capitalization rising by 47%. The country's capital market outperformed many global markets, positioning itself as a top performer in Sub-Saharan Africa. This growth not only reflects the resilience of the sector but also signifies opportunities for investors and businesses looking to engage in the market. 3. Insurance and Other Sub-Sectors: While insurance has historically faced challenges in Nigeria, there are signs of improvement and growth in the sector. As part of EnterpriseNGR's holistic approach to promoting balanced growth, emphasis is placed on driving development across all sub-sectors, including non-interest finance, pensions, fintech, and professional services. The sector's ability to adapt and thrive amidst adversity underscores its resilience and potential for further expansion. In his closing remarks, Obi Ibekwe described the state of the enterprise report for 2023 in one word: resilience. This encapsulates the overarching theme of the report, showcasing the strength and tenacity of Nigeria's financial and professional services sectors in navigating challenges and driving growth. As the sector continues to evolve and respond to changing dynamics, a focus on sustainability and innovation will be key to ensuring long-term success and prosperity.