2. What
this
isn’t
ᵠ A
comprehensive
industry
overview
an
analysis
of
the
entire
financial
services
industry
in
Nigeria
ᵠ An
in-‐depth
competitive
review
of
all
the
sectors
in
which
you
play
ᵠ A
primer
on
ARM
and
the
Nigerian
marketplace
3. What
this
is
ᵠ An
overview
of
the
big
stories
with
system
wide
implications
ᵠ A
snapshot
of
current
events
that
are
likely
to
impact
your
business
in
the
short
to
medium
term
5. After
the
crisis
ᵠ Tightening
of
risk
management
procedures
led
to
a
lot
less
liquidity
in
the
marketplace
ᵠ Companies
increasingly
turning
to
private
equity
as
a
source
of
funding
ᵠ Shook
confidence
in
the
stock
market
(revealed
the
extent
to
which
the
‘success’
was
driven
by
bad
loans)
ᵠ Nigerian
brokers
began
to
take
positions
during
the
bubble;
when
the
crash
came,
a
lot
of
them
ran
into
trouble
ᵠ Risk
management
now
an
important
niche,
currently
being
filled
by
international
expertise
6. The
shakeout
continues?
ᵠ Conventional
wisdom
is
that
further
consolidation
is
likely
in
the
Banking
sector
ᵠ The
cream
should
rise
to
the
top
ᵠ Fewer,
stronger,
better
run
institutions
ᵠ Greater
transparency,
efficiency,
better
service
ᵠ Deeper
talent
pools
8. The
Americans
are
coming
(well,
actually,
they’re
already
here)
ᵠ The
big
American
investment
banks
are
setting
up
permanent
shop
ᵠ Citigroup,
JP
Morgan,
Morgan
Stanley
all
already
have
offices
or
have
plans
ᵠ Goldman
Sachs
doesn’t
have
an
office
but
is
committing
significant
resources
ᵠ Means
there
are
enough
large,
private
sector
deals
to
justify
a
permanent
presence
ᵠ Adding
to
competition,
but
also
mean
more
sophisticated
skill
set
and
deeper
experience
in
the
market
9. Legislative
influence:
the
good
&
the
bad
ᵠ Liberalization
of
restrictions
on
Pension
Funds
would
significantly
deepen
the
pool
money
available
for
investment
ᵠ Legislation
pending
in
the
House
that
threatens
the
autonomy
of
the
CBN
and
potentially
politicize
fiscal
policy
10. Outrageous
behaviour
and
skeletons
coming
out
of
the
closet
ᵠ The
pension
scandal
ᵠ The
fuel
subsidy
scandal
ᵠ The
Otedola/Lawan
scandal
ᵠ The
financial
services
industry
(especially
the
banks)
are
assumed
complicit
in
some
way
ᵠ Feeds
a
general
sense
of
distrust
and
uncertainty
ᵠ Reinforces
the
international
perception
of
uncontrolled
corruption
11. …and?
ᵠ Influx
of
skills,
potential
deepening
of
the
well
should
lead
to
a
more
sophisticated
market
ᵠ Opportunity
to
lead
the
way
in
complex
transactions,
niche
competencies
ᵠ Continued
caution
by
banks
remains
an
opportunity
for
private
equity
ᵠ Continued
softness
in
stock
market
represents
an
opportunity
to
broaden
portfolios
of
wealth
management
clients
ᵠ A
crowded
marketplace
(in
the
short
term)
means
more
competition,
but
also
an
opportunity
to
leverage
experience,
skill
and
delivery
to
‘widen
the
gap’
ᵠ As
always,
in
Nigeria,
there’s
a
hint
of
uncertainty:
CBN’s
autonomy
in
question,
more
surprises
from
the
banking
sector
(and
of
course,
Boko
Haram,
Power
and
all
the
other
macro
issues)