Standard Bank's Chris Newson 'keeps hope alive' for a stronger Nigerian economy
Mr Chris Newson, the chief executive officer of Stanbic IBTC, a subsidiary of South Africa's Standard Bank lent a voice to the growing number of voices proclaiming hope in the Nigerian economy. Check out the story below as reported by Next (www.234next.com).
Stanbic optimistic on Nigerian loan growth
Nigeria’s banking sector could see 20-25 percent loan growth over the next three to five years as demand for both consumer and infrastructure finance increases, the chief executive officer of Stanbic IBTC said.
Chris Newson, head of the Nigerian unit of South Africa’s Standard Bank, said growth would be driven by Nigeria’s significant infrastructure finance needs as well as the emergence of small businesses and a growing middle class.
“If you think about what would be a reasonable level of growth within risk assets across the industry, our sense is a 20-25 percent is not completely unrealistic,” Newson said on Monday in an interview as part of the Reuters Africa Investment Summit.
Africa’s most populous nation has a huge infrastructure gap. The government has announced multi-billion dollar plans to privatise the power sector in a bid to end chronic electricity shortages, while new roads, bridges and homes are being built in cities including the capital Abuja and commercial hub Lagos.
“There is an advisory opportunity but there is also an asset opportunity. Where we have liquidity and capital, as we do, we’ll be looking to take on some of those assets on to our own books,” Newson said.
A widening middle class in the nation of 150 million people, combined with the potential for the growth in small business as infrastructure improves, also present opportunities for personal and small business banking.
“We think the engine room of growth coming out of Nigeria will particularly be in that business banking, individual environment,” Newson said in his office in Lagos.
“The question of consumer finance is very, very young in Nigeria and the opportunity there we think over time is very significant,” he said.
He said Stanbic IBTC had 151 branches in Nigeria, double the number it had in 2007, and was still in an “investment phase”.
Stanbic optimistic on Nigerian loan growth
Nigeria’s banking sector could see 20-25 percent loan growth over the next three to five years as demand for both consumer and infrastructure finance increases, the chief executive officer of Stanbic IBTC said.
Chris Newson, head of the Nigerian unit of South Africa’s Standard Bank, said growth would be driven by Nigeria’s significant infrastructure finance needs as well as the emergence of small businesses and a growing middle class.
“If you think about what would be a reasonable level of growth within risk assets across the industry, our sense is a 20-25 percent is not completely unrealistic,” Newson said on Monday in an interview as part of the Reuters Africa Investment Summit.
Africa’s most populous nation has a huge infrastructure gap. The government has announced multi-billion dollar plans to privatise the power sector in a bid to end chronic electricity shortages, while new roads, bridges and homes are being built in cities including the capital Abuja and commercial hub Lagos.
“There is an advisory opportunity but there is also an asset opportunity. Where we have liquidity and capital, as we do, we’ll be looking to take on some of those assets on to our own books,” Newson said.
A widening middle class in the nation of 150 million people, combined with the potential for the growth in small business as infrastructure improves, also present opportunities for personal and small business banking.
“We think the engine room of growth coming out of Nigeria will particularly be in that business banking, individual environment,” Newson said in his office in Lagos.
“The question of consumer finance is very, very young in Nigeria and the opportunity there we think over time is very significant,” he said.
He said Stanbic IBTC had 151 branches in Nigeria, double the number it had in 2007, and was still in an “investment phase”.
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