[Nigeria Business Week] Andrea Ayemoba: Digitization set to penetrate capital market, investment
Given the economic situation spreading across the globe in the last couple of years, it is with some optimism we can take the modest increase in Nigeria’s GDP. Though losing on some fronts, such as oil and gas productivity, it is encouraging to see winning numbers in other sectors.
Telecom and tech startup space for example.
MTN and Airtel have thrived in a big way, the former growing its shareholder base and the latter’s profits soaring beyond all expectation. Airtel Nigeria did however make a statement on how the Federal Government’s SIM/NIN mandate has affected their operations in the country, specifically its subscriber base.
The Government on the other hand has reason to uphold this mandate, having recorded a huge increase in NIN registrations since the deactivation policy was put in place.
Nigeria has undeniably one of the most successful startup environments in Africa. This year alone, local tech startups have raised well over half a billion dollars in funding. Always coming up with new innovations, the latest is one to allow employees access salaries before payday.
Banks are not trailing behind at all. An indigenous mortgage bank has announced growth in deposits and one of the nation’s premier banks is poised to dominate agency banking using its own digital platform. Indeed digitization has infiltrated nearly all pockets of the economy. The Securities and Exchange Commission (SEC) has set on a path to digitize capital market operations.
Hospitality also has recorded some success this week; Transcorp’s Q1 profit showed enormous growth, where it recorded loss in the same period last year. This development is especially praiseworthy, as hospitality and travel has suffered greatly in recent years because of the pandemic. One might even suggest that it points toward economic recovery.