Nigeria’s largest bank by market capitalization, Guaranty Trust Bank, recently released its 2017 economic outlook. Nairametrics obtained a copy which you can download by simply scrolling down.
This report presents their forecasts and opinions of the broad Nigerian macroeconomic and banking sector trends that they expect would shape the economic landscape in 2017
The report highlighted a number of critical information we think our readers should note. Here they are;
Banking sector stats
- Ratio of non-performing loans is currently 11.7% compared to 5.3% in December 2015.
- Oil and gas loans account for about 30% of total industry exposure
- The CBN is not looking to bail out any more banks, especially those with significant loans in oil and gas power, general commerce, manufacturing etc.
- Most banks will have to raise capital to meet Basel II requirements above the 15% CAR currently set by the CBN
The bank also listed 6 key issues that the CBN must address if Nigeria is to get back to economic growth.
- Genuine liberalization of the foreign exchange market with the intention of achieving a single exchange rate should be topmost on the minds of monetary authorities.
- Credibility of the foreign exchange policy is key to attracting investors. Hence, policies must be transparent, unambiguous and fully implemented.
- The federal government must put its best foot forward in finding a lasting solution to the militancy concerns in the Niger Delta.
- The true deregulation of the downstream oil and gas sector will only be achieved when the Petroleum Industry Bill (PIB) has been passed into law. Significant investment in local refining can only come to fruition after the signing of the PIB into law.
- The government, as a matter of urgency, needs to prepare an economic blueprint detailing milestones and roadmaps with unambiguous key performance indicators (KPI) regarding the attainment of economic prosperity.
- Policy credibility will attract desired investment and in turn bring about sustainable and inclusive economic growth.
Get the report GT Bank Economic Outlook