Hamlet’s most quoted lines, “To be or not to be” is one of my all time favorites, probably applicable to all situations. Now that we are in the end of another year, and the beginning of a new one, the obvious question is “To Remember or Not To Remember” the year that went by. The answer is – definitely Yes! Why not remember 2015? It has been a good year in many ways, for which I am grateful to God and thankful to a number of people. But it has also been unpleasant in other ways – again something that has given me a reason to introspect and reflected upon. So let me share some of the highlights of 2015.
#Throwback2015
If I have to select one particular event that has brought about transformation for all the people of Nigeria, it was the Nigerian General Election in 2015. Of course, this is not the place to discuss the nitty-gritty of the results, but let’s just say that the elections were the first signs of change that our country will be encountering.
Changes in Political Climate
When a nation goes through political change it brings with itself a sea of change - change in the socio and economic conditions and leadership as well. Every new government comes with their own set of policies and agendas, but the goal is the same – creating opportunities for transformation. As a nation, we have had disturbing times in the past and the recent harrowing experiences of militant groups. With the change in political power and election of a new people’s leader, the Nigerian General Election as such, has brought with itself a ray of hope for the people of Nigeria.
And the promise has been felt across industries. Today, the Nigerian banking sector for instance has come a long way from its tumultuous days of 2008-09. This is evident in the public’s acceptance of digitalization of banking processes, cashless transactions, mobile money, internet and e-banking and more. Of course, none of this could have been possible without the relentless efforts of the Central Bank of Nigeria to make banking transparent, efficient and affordable.
Today, with a GDP of US$510 billion (McKinsey & Company Report July 2014), it is indeed a matter of pride for us here in Nigeria, to be ranked as the 26th largest economies in the world, and the largest in Africa.
Challenging times calling for Diversification
I will have to go back a few decades, when I realize that the challenge our country is facing is due to neglecting the manufacturing and other sectors. Since the 1970s the Nigerian economy has depended significantly on the petroleum sector. True, we have seen hay days because of this shift, but with the recent drop in global oil prices, it’s obvious that as a country we will need to diversify into different sectors and rebuild the manufacturing, agriculture, banking and other sectors, in order to maintain our present economic conditions. Oil still accounts for almost 95% of all exports and 81% of government revenues, and its fluctuating price has adversely affected government revenues and the value of the Naira.
To me, such fiscal challenges are only a reminder that as a growing nation it’s unwise to place all our eggs in one basket. In 2015, we missed the opportunity to be proactive. I believe, we will not repeat the mistake in 2016.
Battling Corruption
When I said that there were certain worrisome issues, which calls for introspection, the present case of corruption in Nigeria could be taken as an example of it. Most businesses in Nigeria are legal and are doing business ethically. But it’s the selfish acts of a few that’s given our country a bad name globally.
Due to the fraudulent activities of a minority of people, as a country we have earned a very unfortunate reputation, which overshadows the hard work and effort of thousands of others. There have been several money transfer scheme scams, especially the charity scams, real estate scam or even will scams. The recent fluctuating price of global crude oil has also encouraged some to associate themselves with scams, by luring foreign associations to bear a fee for receiving crude oil from the NNPC at special rates.
It is in such cases that I believe that as a country we need to be more cautious. Corruption is dominant in every nation, and cannot be fought in a day. But with the change in political power and modernization of business transactions, I believe that 2016 will be bringing about significant reduction to corruption.
#LookingForward2016
Overall, I think 2015 has been a satisfactory year for most – and if things go as planned, there’s no reason why 2016 should not be! A Report by The McKinsey & Company in July 2014 suggested that by 2030, the GDP of Nigeria can be tripled. Though it’s a very difficult target to achieve in reality, but with our present resources and capabilities, it is something we may aspire for as a team.
Now considering that I am a banker after all, on the banking front, we need to expand our network and reach out to a wider audience base. The MSME and banks in particular, are designing better policies to increase credit flow and help business growth. Additionally, I also feel that entrepreneurship should be encouraged and supported. Entrepreneurship brings in new ideas, creates jobs and fosters economic growth. Startups have emerged – several of which I like and can only wish that in future, younger minds come up with even better ideas.
And finally, as the CEO of Diamond Bank, it has been our constant pursuit to take banking to the underbanked and small businesses. It is estimated that less than 0.5% of the population has real access to credit from the banking sector. In 2016, that is one area my team will definitely be looking into!
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