New opportunities in Nigeria's retail banking

The Nigerian banking sector is gearing up for growth and expansion amidst a backdrop of economic opportunities presented by the recent events in the country's macroeconomic environment. The release of Nigeria's third-quarter GDP growth rate of 1.4 per cent increase, coupled with the presentation of the 2018 budget at the Nigerian Senate, has set the stage for retail banks to capitalize on emerging prospects. In a recent interview on CNBC Africa, Robert Aderinmola, Consumer Insight and Analytics Partner Corporate Planning at Diamond Bank, delved into the potential for retail banks in Nigeria to thrive in the current economic landscape. The key theme that emerges from Aderinmola's insights is the significance of banks identifying and seizing opportunities in the market and economy. He emphasized that retail banks, like Diamond Bank, are inclined to invest when they perceive opportunities for growth. Drawing on historical examples, such as the banking sector's involvement in the telecoms and power industries, Aderinmola underscored the proactive stance of banks in leveraging economic prospects. Aderinmola highlighted the government's emphasis on financing the deficit through the local market in the 2018 budget estimate, pointing to increased liquidity for banks to support businesses. With sectors like agriculture and oil showing promise, banks are poised to play a pivotal role in supporting entrepreneurs and driving economic activities. Aderinmola expressed optimism about the transformative potential of technology in disrupting the agriculture sector in Nigeria in the coming year. In addressing how the government can further bolster economic activity to complement the efforts of banks, Aderinmola emphasized the need for sound fiscal policies and prioritization of budget estimates and projects. He underscored the importance of streamlining the procurement process to expedite capital expenditure, thereby stimulating the economy and providing banks with the necessary funds to fuel business growth. As Nigeria navigates economic challenges and opportunities, the retail banking sector stands at a crucial juncture to drive innovation, foster entrepreneurship, and contribute to sustainable economic development. With a strategic focus on identifying and capitalizing on emerging opportunities, banks like Diamond Bank are well-positioned to play a pivotal role in shaping Nigeria's financial landscape and propelling the nation towards prosperity.