Connect with us


Financial focus – Journal of Financial Services in Nigeria

The disruptive effect of Technology continues to bring about major transformation in the financial services sector with FinTech startups and alternative finance solutions encroaching upon established markets. It is now becoming obvious that the accelerating pace of technological change is the most creative force – and also the most destructive – in the financial services ecosystem today. In “Technology and the Financial Services Industry”, we set out to capture what the technological advancements are and the real world implications of these changes on the financial services industry.

The new IFRS 9 standard will have significant impact on profitability with banks making major changes to their systems and processes, as well as developing the necessary skills to handle the complex modelling requirements. “IFRS 9: Impairment of risk assets – Implementation challenges and strategy” captures our experience so far while working with Banks towards putting in place an

implementation plan. While the success story of the Nigeria pension industry continues, we recognise a number of factors that will have immense influence on the future of the industry which stakeholders should take note of in the article, “The Nigerian Pension Industry; Navigating the Future Landscape”.

It is no longer news that Nigeria currently grapples with difficult macroeconomic conditions following the protracted uncertainties around global oil prices. This has seen a sharp drop in Government revenue, and has put immense pressure on the exchange rate with inflation rising. In these conditions, local and foreign businesses are less likely to take risks and invest while local businesses struggle to sustain operations and remain profitable. Our article “What’s next for Nigeria’s economy? Navigating the rocky road ahead” examines the challenges faced by businesses and what Financial Institutions can do to survive. In the same vein, we’ve also discussed “The use of Restructuring to preserve value” which is especially essential in these times in order to ensure the future profitability of banks are not compromised.

Finally, the dwindling fortune from oil has naturally seen an increased interest by government in other sources of revenue such as taxation. This is a trend we expect to continue going forward hence there is need for financial services type entities to keep up with their tax obligations to avoid issues with the regulator and tax authorities. Two articles in this year’s journal shines some light on this. “How effective is your tax function in dealing with tough and uncertain tax times?” dwells on ways to improve operational effectiveness of tax functions in order to ensure their survival in the current terrain while “5 tax issues that could cost the financial services industry a lot of money” highlights key emerging tax issues that the financial services industry needs to consider and prepare for.

It is my hope that this publication gives a good understanding of current trends in the financial services sector in Nigeria while presenting a glimpse of what is to come. We are happy as always, to discuss any of the topics with you in detail while looking forward to your comments and feedback.


Click to comment

Leave a Reply