Nigeria’s financial system records least progress in EMEs - PwC
PwC, a global financial and economy consultant, has revealed in its recently released Project Blue report that Nigeria has the highest percentage of its population living in poverty, with its financial system showing the least progress of all the seven emerging markets: Nigeria, Brazil, China, India, Indonesia, Mexico and South Africa.
The report stressed that lack of an efficient and resilient financial system is still holding back inclusive and sustainable growth in emerging markets across the globe including Nigeria.
The PwC said, “In five of the eight key areas, Nigeria’s financial system scores significantly below PwC’s fit-for-purpose targets, holding back inclusive and sustainable growth. However, the success of Nigeria’s auto-enrolment pension model is a bright spot.”
The PwC assessment highlights that, “While growth in emerging markets continues to outstrip developed counterparts and hundreds of millions of people have been lifted out of poverty, developing a well-functioning financial system remains critical to tackling poverty and sustaining economic growth over the long term.”
“This can’t be said about the other African countries in PwC’s assessment. Not only has Nigeria by far the highest percentage of its population living in poverty, its financial system is also showing the least progress of all seven emerging markets.
“Emerging markets need a robust and broad-based financial infrastructure to channel funds efficiently, draw people into the market economy and enable them to share in the benefits,’’ it said.
PwC said also that the financial system in Nigeria is significantly impeding growth.
FS Advisory Leader and Chief Economist at PwC Nigeria and Project Blue Global Leader, Dr. Andrew S. Nevin, stressed that emerging markets should try and learn from their peers: “Our analysis clearly shows that some markets are ahead of others in different dimensions. Ask yourself the question: what can we learn from each other’s experience?
‘’Specifically financial services organisations should realise that many of the ground-breaking innovations in FS are being spearheaded in Asia and other emerging markets. Without ageing legacy systems to hold them back, they have clean sheets upon which to harness the latest developments in technology and develop their own distinctive business models.”
PwC Project Blue explores the major trends that are transforming the global economy and competitive landscape for financial services (FS) organisations worldwide. It also sets out the implications of these trends for public policy and regulation, and how governments and regulators can forge an efficient, resilient and inclusive financial system.
The organisation said the purpose of the research is to build trust in society and solve important problems, adding, “We’re a network of firms in 157 countries with more than 223,000 people who are committed to delivering quality in assurance, advisory and tax services.’’