Current trends and the future of financial services in Nigeria - PwC Journal

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Wednesday, August 10, 2016 7:00am / PwC

The disruptive effects of technology on the financial services landscape, the transformation in financial reporting brought about by IFRS9, the factors shaping the future of the pensions industry in Nigeria and the tax issues that will impact the industry especially in this challenging times are among key topics examined in the latest edition of PwC Nigeria’s Financial Focus, a journal of Financial Services in Nigeria.  

This third edition of the annual journal released recently in Lagos, features insights by subject matter specialists across the various fields covered and is a product of the firm’s in depth understanding and knowledge of the industry, gathered from many years of operating in this market and supporting some of the biggest financial institutions in the country.

The journal explores in detail, how FinTech startups and alternative finance solutions are encroaching upon established markets. This, the journal notes is the most creative force – and also the most destructive – in the financial services ecosystem today with huge implications for industry players. Also of critical importance to banks is the IFRS9 reporting standard which is effective for annual periods beginning on or after January 2018. The expected challenges of the standard and best practice for its implementation, is also discussed in detail.  

The current difficult macroeconomic conditions being experienced in the country following the protracted uncertainties around global oil prices is another issue explored in the journal. The various possible scenarios for the economy and what companies can do to survive is discussed while the use of Restructuring to preserve value which is especially essential in these times, was also discussed.  In addition, ways financial institutions can improve the operational effectiveness of tax functions in order to ensure their survival as well as other tax issues that can cost the industry a lot of money were also explored in the journal.

Commenting on the journal, Patrick Obianwa, Partner and Financial Services Leader for PwC Nigeria noted: “This third edition of our Nigeria Financial Services journal gives a good understanding of current trends in the financial services sector in Nigeria while presenting a glimpse of what is to come. Technology is having a disproportionate effect on the financial industry. By 2020, consumers will need banking services, but they may not turn to a bank to get them. Or, at least, maybe not in the form we know it today. This is where things are headed and players in Nigeria must begin to prepare and shape their business models accordingly. We have also explored survival strategies in this economy, the future of the pensions industry in Nigeria and how banks can go about implementing the changes IFRS9 brings.”

“The future is already taking shape and companies who will succeed are those who make the right changes to realign their business and ride the storm. We hope that the high quality articles in this publication will equip readers with the information they need to stay ahead of the pack especially in these very challenging and uncertain times. As a firm, we will continue to support the sector with our thought leadership and in-depth analysis of the industry as well as developments in the economy and we hope that by doing this we can evolve a stronger, resilient and more vibrant financial services sector in Nigeria,” he concluded.

Kindly click to download the report here

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