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.
Capitalization
- 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
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we shall see soon,we are in 2017,and it’s protesting against this incompetent govt policies since they took over,according to police report about 70 people have commited sucides in last year due to this present economic plan.
Now they are travelling overseas for Eurobond aimed for Nigerians based abroad,after president buhari working part-time and never stayed more than 6 weeks in aso rock in 20015.thecurrent jokes in Nigeria how come kastina state have produces 2 terminal or sick presidents in the last 10 yrs.
Personally I joined most Nigerians a quick recovery for president buhari,even critics of president buhari wishes the best,even Gov. fayose the tse, tse fly in the presidency wishes the best for the president.the ipob wishes the best for president buhari and a quick recovery so he can faces icc with George bush jr and tony blair for war crime,but I do not knows what war,president buhari or not waged any war.
The nation have recovered significantly spiritually, and since they(thegovt) failed to be sensitive.i.e show proper leadship and clear direction,this gov twill continue to takes flaxes from all angle,whether president buhari likes or not some ministers will leave their office soon.he was warmed.prevention is better than a cure.God bless nigeria