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Banking sector key to economic growth – Durosinmi-Etti

By BusinessNews Staff on July 28, 2014

Former Group Managing Director/Chief Executive Officer (GMD/CEO) of Skye Bank Plc, Mr. Kehinde Durosinmi-Etti, has said that the Nigerian banking industry has a crucial role in stimulating the growth of the economy.

Durosinmi-Etti who said this in an interview with THISDAY noted that regardless its challenges, the Nigerian economy has remained resilient, with strong growth prospect.
“The economy hinges on the banking industry and the economy seems to be doing very well regardless of all the difficulties,” he added.

Nigeria has the potential to be one of the world’s top 20 economies by 2030 with a consumer base exceeding the current population of France and Germany, according to McKinsey & Co, a global management consulting firm.

Nigeria, Africa’s biggest economy, may expand about 7.1 per cent a year through 2030, boosting gross domestic product (GDP) to $1.6 trillion, possibly pushing it above Netherlands, Thailand and Malaysia, the New York-based company said in its latest report.

About 60 per cent of Nigeria’s estimated population of 273 million by then may live in households earning more than $7,500 a year, fueling a consumer boom, McKinsey further said.
Therefore, Durosinmi-Etti urged bankers to always maintain professionalism and also apply strong ethics in discharging their duties.

“Once they do that (adhere to ethics), they would sustain their professions and ensure that they have an enduring and successful career.

“So, I think that the future of the industry is very bright. Some of the monetary policies coming out from the central bank are very good, while some make it a bit more difficult, but I believe that the environment and ability of the banks is not in doubt.

“So I think the industry would grow stronger and more profitable and be able to sustain a lot of what is possible within the economy. The supervision by the central bank would ensure a healthy and vibrant banking industry,” he added.

He described the work force in the banking industry as the bedrock, stressing the need for continuous investment and training.

According to the former Skye Bank boss, retail banking is the way to go. He described banking as a consumer product, saying that the greatest benefit of banking is in retail business.

“The benefits of retail banking are humongous. You would have a widespread of customers and the benefit on both sides in terms of providing service and the ability to generate income and also sustain business over time; you would get the best from a wide array of customers providing varied services to them,” he added.

Commenting on the recent extension of the proposed common currency for members of the Economic Community of West African States (ECOWAS), he noted that if the sub-region decides to go like the European Union it could resort to problems. He noted that there were two major languages – the French bloc and the English speaking countries that have different currencies.

“Even within that, there are differences in levels of economic development and levels of compliance in terms of having an enduring system that would support adequate economic activities where you can get the benefits of a single currency.

“So, those are limitations, but I would be cautious. Even though it is something that looks good on paper, practical example has shown that I think we need more time before, I think, we can do it,” he added.

[This Day]

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