Afrinvest sees N4.9tr gross earnings for banks

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Afrinvest West Africa Limited has projected that the banking industry gross earnings will hit N4.9 trillion by this year end.
Its Group Managing Director, Ike Chioke, who stated this at the 14th edition of the Afrinvest Banking Sector Report Launch titled: Beyond the Precipice: Pulling back from the Brink, said the industry, which is expected to recover strongly this year, will grow by 19.5 per cent from N4.1 trillion in 2018 to N4.9 trillion in 2019.
He also predicted that the industry profit will hit N1.178 trillion from N497.9 billion in 2015.
To achieve the desired level of strong economic growth and prosperity as well as improve on the performance in key sectors of the Nigerian economy, financial experts at the launch stressed the need for adjustments in structural reforms.
Chioke explained that the current administration is facing challenges in key sectors of the  economy adding that the Federal Government needed to reduce the level of borrowing, subsidise petrol consumption, reduce the cost of governance and prioritise more infrastructures.
Corroborating him, Partner and Chief Economist, PwC Nigeria, Andrew Nevin, said structural changes are needed to fix some of the challenges facing the economy.
He said: “The entire states spending in all three levels of government in Nigeria is about N14trillion, the economy is about N143 trillion. Take out the interest payment, you have N12 trillion and by my calculations, that is about N60,000 for every Nigerian. It is impossible to cover education, healthcare infrastructure, power, security with that N60,000 per Nigerian.”
Chairman, Afrinvest Securities Limited, Fatumata Coker, called on the government to focus more on education and technology while adding that broadband penetration ought to be pursued vigorously so as to compete with its peers in the African market.
“We keep adopting the same concept and we need to look at this in our own context. Singapore, for example, took a step back to understand what they had mapped out for their economy,” he said.