Kpmg Business Survey Highlights Forex Risk In Nigeria
CFOs and Heads of Finance in leading organisations across all major sectors in Nigeria shared their opinions on the outlook for their businesses, their strategies for toll and risk management and the priorities for an enabling surroundings.
In the 2021 CFO Outlook Survey, KPMG collated the views of CFOs on the affect of the COVID-19 pandemic on their corresponding industries, their outlook on the prospects of growth for both the economy and their organisations, their key challenges from an ease of doing business organization perspective, and finally, their response to the challenges of improving the efficiency and effectiveness of the finance office.
In improver to this, KPMG incorporated feedback from organised interviews with selected CFOs across the key sectors of the economy. Below are highlights from the survey.
Prospects for Nigeria's Economic Growth in 2021
The survey noted that CFOs have a pessimistic view on the prospects for growth in 2021, and this is consequent with their views about the growth of the Nigerian economy in 2020. According to the survey, some of the underlying reasons adduced for the much less confident view were:
- Uncertain FX Environment
- Oil price and Oil production
- Emerging Digital Economy
Furthermore, while Nigeria recorded venture capital investments of United states of america$307m in 2020, and over US$200m already in 2021, the survey noted that policy actions like the recent Twitter ban in June 2021 bodes negatively for the outlook in the 2d one-half of 2021.
Ease of Doing Business in Nigeria
According to the survey, CFOs have identified Security, Infrastructure and Power as the superlative 3 matters that the regime needs to address to enable ease of doing business, stimulate economic growth and raise public trust. In addition, CFOs besides indicated that the Government needs to ensure policy harmonization and consistency in implementation to heave public trust.
The survey also noted that restoring optimism over Nigeria'due south economic prospects requires increased efforts from both fiscal and budgetary perspectives. It added that this would restore growth to either the mid-to-high single-digit levels observed in the era between 2000 and 2010, or double-digit expansion.
Leveraging Technology in Finance
The survey showed that CFOs identified Deject Calculating, Advanced Analytics, and Visualization as the leading technologies that take been used to better efficiency in their finance functions. They also identified other technologies, including Robotics Process Automation, Bogus Intelligence and Blockchain, equally new frontiers for delivering financial services, and some CFOs have started exploring these technologies for adoption.
African Continental Costless Trade Surface area (AfCFTA)
With the official commencement of AfCFTA in 2021, l% of CFOs believe that the understanding betwixt African nations volition have a medium impact on their businesses in the curt term. Noteworthily, xl% of CFOs believe AfCFTA will accept a low touch on on their business in 2021. Nonetheless, they mention that having an effective execution program for the AfCFTA will be important.
Kpmg Business Survey Highlights Forex Risk In Nigeria,
Source: https://africa.businessinsider.com/local/markets/survey-finds-twitter-ban-will-negatively-impact-nigerias-economic-outlook-for-h2-2021/vxqvw9s?op=1
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