Business
Afrinvest Report Shows 20% Growth In Nigeria’s Financial Sector
The Afrinvest report has revealed that Nigeria’s Financial and Insurance sector grew from 10.1 per cent in 2021 to 31.2 per cent in the first quarter of 2024,
The new Afrinvest report, which was launched last Wednesday in Abuja, disclosed that the agriculture sector lagged behind other sectors.
The report, with the theme, “Bank Recapitalisation, Catalyst for a $1 trillion Economy”, highlighted that a Nigerian capital market holding company with specialised subsidiaries focusing on the unique but integrated wealth management needs of clients in West Africa, analysed the three-year growth trajectory of Nigeria’s seventh largest sector gross domestic product, revealing a mixed performance across various industries.
It showed that the agriculture sector had experienced a decline, from 2.1 per cent in 2021 to 1.9 per cent and 1.1 per cent in 2022 and 2023, respectively, to 0.2 per cent in Q1 2024.
This trend may be attributed to the sector’s vulnerability to climate change and the challenges posed by rural infrastructure.
According to the report, the mining and quarry sector has struggled, with a decline of 7.8 per cent in 2021 and -18.2 per cent in 2022. However, the sector has shown signs of recovery, with a growth rate of 6.3 per cent predicted for Q1 of 2024.
The real estate sector increased from 2.3 per cent in 2021 3.9 per cent in 2022, 1.7 per cent in 2023 and 0.8 per cent in Q1 2024.
Experts note that this trend may be attributed to the sector’s sensitivity to economic fluctuations and the high cost of housing.
The manufacturing sector has seen a gradual decline, from 3.3 per cent to 2.4 and 1.4 per cent in 2022 and 2023, respectively, in 2021 and to 1.5 per cent in Q1, 2024.
Analysts attributed the decline to the sector’s reliance on imported raw materials and the challenges posed by the country’s infrastructure.
The trade sector has also experienced a decline, from 8.6 per cent to 5.1 and 1.7 per cent 2022 and 2023, respectively, and to 1.2 per cent in Q1, 2024, due to the sector’s vulnerability to global economic trends and the impact of inflation.
The information and communication sector has shown a steady growth rate, increasing from 6.5 per cent in 2021 to 9.8 per cent in 2022 but declining to 7.9 per cent in 2023 and then 5.4 per cent in Q1 of 2024.
According to Afrinvest, Nigeria’s financial institutions have demonstrated remarkable resilience, with the sector expanding by 18.4 per cent in real terms between Q3:2023 and Q1:2024, making it the fastest-growing sector among the country’s seven largest GDP sub-components.
“The financial institutions’ activity has remained resilient, expanding by 18.4 per cent in real terms between Q3:2023 and Q1:2024, to emerge as the fastest growing sector among Nigeria’s seven largest GDP sub-components”, Afrinvest noted.
It attributed the performance to several factors, including “increased investment in vertical and horizontal business expansions, rapid growth in earnings from digital channels (aided by a reduction in physical cash in circulation), a favourable interest rate environment, and a positive spillover effect from naira devaluation (owing to net FCY asset holdings)”.
Looking ahead, Afrinvest noted that it expected growth in the broader economy to range between 3.0 per cent and 4.0 per cent in the near term, owing largely to weak institutional capacity to translate reform goals into visible gains.
MoniePoint Inc. a digital financial firm in Nigeria, has said it is empowering community pharmacists across the country with innovative payment solutions to improve access to drugs.
The financial firm said it had also provided loans for pharmacists under the aegis of the Association of Community Pharmacists of Nigeria (ACPN) to drive healthcare delivery in the country.
MoniePoint in a release titled, “Inside Nigeria’s community pharmacies: How Moniepoint drives healthcare access with payments and funding”, has reaffirmed its commitment to providing digital payment solutions to improve health outcomes in Nigeria.
The release examined how community pharmacies play a crucial role as vital access points for medical care in Nigeria, especially in areas with limited hospital or clinic access.
According to the release, the ACPN National Chairman, Ambrose Igwekwam, highlighted the critical role played by community pharmacies in Nigeria’s healthcare system over the years.
Igwekwam, however, expressed concerns over the challenges confronting the nation’s pharmaceutical industry which he said was hindering access to affordable medicines.
The pharmacist listed poor infrastructural systems, power, transportation, regulatory bottlenecks, importation dependency, and limited research opportunities as major challenges facing the pharmaceutical sector.
He also stressed the need for robust collaborative efforts with institutions like Moniepoint to strengthen the sector.
“As Nigeria continues to grow, improving local pharma manufacturing to meet the demands of this growth presents a key opportunity for us all.
“There is also the African Continental Free Trade Area Agreement, which is expected to boost our industry, especially when we start producing our drugs locally, which will provide the much needed foreign exchange from exports.
“We are also seeing advancements in digital health and technology which would hopefully deepen the practice of e-prescription in Nigeria”, the ACPN boss said.
Corlins Walter
In order to enhance customer service and streamline operations, the Chartered Insurance Institute of Nigeria (CIIN) has called on stakeholders in the insurance industry to embrace Artificial Intelligence (AI).
The President of the institute, Yetunde Ilori, made this call at the 2024 Office Representatives Committee (ORC) Workshop, organised by the institute, with the theme “AI and the Future of the Insurance Industry”, in Lagos.
Ilori at the event, emphasised the importance of AI adoption, noting that it was not a threat to jobs but rather a tool to improve efficiency across the insurance sector.
“It is not about AI taking over our jobs, but about us using AI to simplify processes and give maximum satisfaction to all the customers we serve whether as underwriters, brokers, loss adjusters, or in educating our members”, she said.
The workshop, which brought players in the insurance sector together, aimed to address how AI could be leveraged to transform business processes and improve customer interactions.
The Chairman of the ORC, Monica Nwachukwu, underscored the role of AI in modernising the industry, adding, “AI can automate customer and claims processes, allowing insurers to provide faster and more efficient services to their customers”.
She explained how AI could help extract data from legacy systems, enhancing decision-making processes.
“By integrating AI with APIs, insurers can feed valuable data into AI solutions to improve operations and customer service”, she added.
In his address, the Managing Partner of A4S and Training Heights, Orlando Odejide, stressed the need for companies to align their strategies with future technologies like AI, especially as they prepare for 2025.
“Any organisation that wants to grow into the future must have its strategic plan in place. If your strategy for 2025 is not ready, it should be done by October”, he advised.
He encouraged participants to think critically about how AI could be integrated into their business models to ensure they remain competitive.
“The idea is for you to use this workshop as a platform to think about your organization and how AI can help streamline your processes and improve growth”, Odejide noted.
In order to gain global respect and recognition, the National Space Research and Development Agency (NASRDA) has reaffirmed its determination to pursue its goal in ensuring that Nigeria’s space capabilities are recognised on the world stage.
The agency also reaffirmed its commitment to positioning Nigeria as a key player in the global space economy.
In a statement by the Director of Media and Corporate Communications, Dr. Felix Ale, NASRDA revealed that the Director-General of the agency, Matthew Adepoju, emphasised this during recent engagements at the 79th United Nations General Assembly and the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) and Global Alliance Business Association international conference in Michigan, United States.
The statement noted that Adepoju outlined a forward-thinking agenda, stressing the importance of Nigeria’s space programme as a leader in research, exploration, and technological innovation.
“Our goal is to ensure that Nigeria’s space capabilities are recognised on the world stage.
“We must foster collaborations with global space agencies to enhance our satellite capabilities and technological infrastructure”, he stated.
The NASRDA boss said the agency is focusing on enhancing satellite capabilities, expanding international collaborations, and leveraging space science for national development.
He said NASRDA will have no stone unturned in pursuit of excellence, ensuring the agency secures the necessary resources and recognition to propel it forward.
“The relationships we build today will pave the way for tomorrow’s advancements in space science.
“Innovation and progress thrive in an environment built on collaboration and inclusivity”, he stated.
He emphasised that with the support of the government, international partners, and a dedicated team, NASRDA is poised to make significant strides in the evolving global space landscape.
“We are on the brink of a new era for Nigeria’s space agency. Together, we will ensure our nation stands out in the global space economy”, he said.
Corlins Walter
