11-19-2019, 11:41 AM
NEWS
Banking industry earnings to hit N4.9trn –Afrinvest
![[Image: Afrinvest.png]](https://www.newtelegraphng.com/wp-content/uploads/2019/11/Afrinvest.png)
…Profit’ll rise to N1.178trn
Afrinvest West Africa Limited has projected that the banking industry gross earnings will hit N4.9 trillion at the end of 2019.
The Group Managing Director, Afrinvest (W.A), Mr. Ike Chioke, who stated this yesterday at the 14th edition of the Afrinvest Banking Sector Report Launch titled, ‘Beyond the precipice: Pulling back from the brink’, said the industry, which is expected to recover strongly during 2019, will grow by 19.5 per cent from N4.1 trillion in 2018 to N4.9 trillion in 2019.
He also predicted that the industry profit will hit N1.178 trillion from N497.9 billion in 2015.
To achieve the desired level of strong economic growth and prosperity as well as improve on the performance in key sectors of the Nigerian economy, financial experts at the launch stressed the need for adjustments in structural reforms.
Chioke explained that the current administration is facing challenges in key sectors of the nation’s economy while adding that the Federal Government needs to reduce the level of borrowing, subsidise petrol consumption, reduce the cost of governance and prioritize more infrastructures.
He said: “Over the last 10 years, we have budgeted over N7 trillion and spent about 55 per cent of that in a disorganised manner. For example, if we plan to spend $110 billion, then we need to organise the infrastructural spend year-on-year. A road, which will cost N50 billion and will be done in 18 months, the money will be there instead of the allocation of N1 billion every three years to that particular road.
“We need to start using our intelligence efficiently as this would mean that the government will not have to keep borrowing just to spend money on infrastructures.”
Corroborating him, Partner and Chief Economist, PwC Nigeria, Andrew Nevin, noted that structural changes are needed to fix some of the challenges facing the economy.
He said: “The entire states spending in all three levels of government in Nigeria is about N14 trillion, the economy is about N143 trillion. Take out the interest payment, you have N12 trillion and by my calculations, that is about N60,000 for every Nigerian. It is impossible to cover education, healthcare infrastructure, power, security with that N60,000 per Nigerian.
“So, the result of that is that Nigerians are very intelligent; they supply their own power, their own education, their own healthcare, their own security and their own infrastructure. So the fact that most people are not aware is that 85 per cent of school children in Lagos are educated in private schools. I would say the number one challenge for the Federal Government is to be relevant to the people because right now they are not relevant. They are relevant for the wrong reasons.”
Chairman, Afrinvest Securities Limited, Fatumata Coker, called on the government to focus more on education and technology while adding that broadband penetration ought to be pursued vigorously so as to compete with its peers in the African market.
“We keep adopting the same concept and we need to look at this in our own context. Singapore, for example, took a step back to understand what they had mapped out for their economy. Our banks are doing well, but are they[/size]
Banking industry earnings to hit N4.9trn –Afrinvest
…Profit’ll rise to N1.178trn
- Experts seek structural reforms
Afrinvest West Africa Limited has projected that the banking industry gross earnings will hit N4.9 trillion at the end of 2019.
The Group Managing Director, Afrinvest (W.A), Mr. Ike Chioke, who stated this yesterday at the 14th edition of the Afrinvest Banking Sector Report Launch titled, ‘Beyond the precipice: Pulling back from the brink’, said the industry, which is expected to recover strongly during 2019, will grow by 19.5 per cent from N4.1 trillion in 2018 to N4.9 trillion in 2019.
He also predicted that the industry profit will hit N1.178 trillion from N497.9 billion in 2015.
To achieve the desired level of strong economic growth and prosperity as well as improve on the performance in key sectors of the Nigerian economy, financial experts at the launch stressed the need for adjustments in structural reforms.
Chioke explained that the current administration is facing challenges in key sectors of the nation’s economy while adding that the Federal Government needs to reduce the level of borrowing, subsidise petrol consumption, reduce the cost of governance and prioritize more infrastructures.
He said: “Over the last 10 years, we have budgeted over N7 trillion and spent about 55 per cent of that in a disorganised manner. For example, if we plan to spend $110 billion, then we need to organise the infrastructural spend year-on-year. A road, which will cost N50 billion and will be done in 18 months, the money will be there instead of the allocation of N1 billion every three years to that particular road.
“We need to start using our intelligence efficiently as this would mean that the government will not have to keep borrowing just to spend money on infrastructures.”
Corroborating him, Partner and Chief Economist, PwC Nigeria, Andrew Nevin, noted that structural changes are needed to fix some of the challenges facing the economy.
He said: “The entire states spending in all three levels of government in Nigeria is about N14 trillion, the economy is about N143 trillion. Take out the interest payment, you have N12 trillion and by my calculations, that is about N60,000 for every Nigerian. It is impossible to cover education, healthcare infrastructure, power, security with that N60,000 per Nigerian.
“So, the result of that is that Nigerians are very intelligent; they supply their own power, their own education, their own healthcare, their own security and their own infrastructure. So the fact that most people are not aware is that 85 per cent of school children in Lagos are educated in private schools. I would say the number one challenge for the Federal Government is to be relevant to the people because right now they are not relevant. They are relevant for the wrong reasons.”
Chairman, Afrinvest Securities Limited, Fatumata Coker, called on the government to focus more on education and technology while adding that broadband penetration ought to be pursued vigorously so as to compete with its peers in the African market.
“We keep adopting the same concept and we need to look at this in our own context. Singapore, for example, took a step back to understand what they had mapped out for their economy. Our banks are doing well, but are they[/size]