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Ficial services industry to grow by 8.32% in 2022 – Rewane

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Ficial services industry to grow by 8.32% in 2022 – Rewane

Mr. Bismarck Rewane, General Manager/CEO of Official Derivatives Company, forecast that the official services industry will grow by 8.32% in 2022.

Rewane, was the keynote speaker at the Nigerian Economic Outlook 2022 webinar hosted by Nigeria Ltd. on Thursday in Lagos.

He swung predictions toward more partnership and collaborations that promote official inclusion.

Rewane added that there would be rationalization and drift within the industry, stressing that Tier 1 banks would take advantage of their strong customer base and balance sheet size.

He said there would be aggressive digital innovation and lending solutions, as well as possible intra- and inter-tier mergers and acquisitions to boost the capital structure.

Rewane said the manufacturing sector would likely grow 4.70 percent in 2022.

He predicted that increased foreign exchange liquidity and increased product innovation would drive growth in the sector.

“Players would benefit from volume and value growth. The major players (Nestlé Nigeria and Unilever) will report 20 percent earnings growth in 2022.

“The agricultural sector is likely to grow 1.6 percent in 2022, an efficient rail system will ease logistical constraints and increase productivity,” he said.

Rewane added that the ICT industry is likely to grow 9.72 percent in 2022 with phone penetration on the rise.

“There will be an increase in Fintech and mobile payments, while a higher level of activities will be supported, the sector will consolidate within the year,” he said.

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

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

He explained that the decrease in inflation would be positive for the purchasing power of consumers and added that monetary tightening in advanced economies could trigger capital outflows.

He also said that the price of oil would remain relatively stable and added that the real growth of the Gross Domestic Product (GDP) would be sublime.

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

He further noted that the reform could hamper activities within 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 foreign exchange supply to manufacturers to ease foreign exchange pressures.

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

On the exchange rate outlook, he said, the CBN would likely intensify efforts towards exchange rate convergence.

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

In the risk matrix in 2022, he listed delayed policy change and reforms, rising social unrest, and official sector crisis, among others, as things to watch out for.

Earlier in his opening remarks, FirstBank Chief Executive Officer Dr. Adesola Adeduntan said the webinar provided an opportunity to assess the performance of the Nigerian economy on key indices in 2021 and benefit from expert views on expectations and the forecast for 2022.

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

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

According to him, the fourth wave of the omicron variant of COVID-19 created a certain level of caution, which affected the activities of the fourth quarter of 2021 and led to the push for booster injections and the reinstatement of COVID protocols.

According to him, specific key lessons can be drawn from the economic and related activities of 2021.

He noted that these lessons and other developments expected in 2022 were vital ingredients for the planning processes of the bank’s esteemed clients and stakeholders.

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

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

“As a bank that is woven into the fabric of society, this webinar further strengthens our support and collaboration with stakeholders as we demonstrate our commitment and willingness to be the partner of first choice for our clients,” he said.

I hoped that by the end of the webinar, the participants would have gained valuable insights into global and local economic direction.

He said that participants would also understand how to strategically position their business and personal endeavors to take advantage of the opportunities that would arise throughout the year.

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Source: NAN

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