₦airaland Forum

Nigeria’s economic reforms have improved transparency that has helped restore confidence in Africa’s most populous nation after years of stagnation. In this exclusive interview, Patricia Sullivan, managing director, Global Head Institutional Cash Management at Deutsche Bank, Germany’s largest bank, described how the lender has been instrumental in connecting growth regions with correspondent banking solutions, Deutsche Bank’s long-standing relationship with Nigeria as well as how the various policies of the government are stabilising the economy.

BusinessDay

Interview excerpts:

What would you say has been the impact of the currency reforms that Nigeria has implemented since 2023? Have the reforms restored Nigeria on the global map?

I think the reforms have been a significant improvement in further opening up the country to globalisation. Some of the negative impacts, for example when exchange restrictions were too limited, led to financial crime risk with efforts to intentionally evade local controls and reporting requirements for what was legitimate business.

Reforms leading to a more rational environment is definitely positive from our perspective so that access and safety are achieved. If I may, it actually allowed a sense of organisation in the system of transactions, because with the FX caps that were in place, people who needed to access currency for good business were doing this in an underground way to try to import, export, to try to support socioeconomic. The perception that this gave to the world is that there’s an underground banking system and systemic lack of transparency.

But in fact, it was just good people, good businesses trying to promote access to markets and goods and so on in Nigeria. So it really has opened up the Nigerian market and really changed the perception that international banks had.


There’s been a flurry of positive news in Nigeria recently. The First Abu Dhabi Bank, for instance, which happens to be one of your partners as well, is opening an office in Nigeria. Does it mean the reforms are luring in foreign investors?

Yeah. I mean, Nigeria is growing in leaps and bounds. Also, with the geopolitical shifts that are happening, you see more trade partners moving here, and it makes sense that other banks would now want to develop a presence here. So, we’re likely to see even more banks follow – I wouldn’t be surprised.

We’re happy to say we have a longstanding history here and know the market very well, and that’s something our clients really rely on. Plus, our Deutsche Bank global network is vast, and that opens up access to corporates and businesses here to get access to other corridors around the globe. But I expect that you’re not only going to see that here in Nigeria, but in some of the other countries in West Africa that are very rich in minerals and other natural resources.


Foreign direct investments remain key for the economy to grow sustainably but that has been slow to react to the reforms. Is Deutsche bank seeing considerable interest from its FDI partners in terms of just setting up in Nigeria?

As I mentioned, Deutsche Bank does a lot of investment to support major projects here, as well as working with our corporate clients headquartered outside of Nigeria who are facilitating business with Nigerian counterparties and they rely on Deutsche Bank to create that access and the necessary support to grow businesses here. So international investments are coming back and more multinationals will move in if current development continues.

I think it’s also a factor not only of the growth potential in this country, but also the reforms that have taken place at the government level. Not only what you’ve already mentioned in terms of FX, but in terms of the country really strengthening its anti-money laundering and counterterror financing rules and regulations that provide comfort for businesses to operate and invest here and reflected in the country being removed from the FATF grey list in October last year. And I think the central bank has been a very strong proponent of creating a safe and sound infrastructure to support our direct investment.


What more would you advise that the government does in addition to the reforms that we’ve already implemented to ensure that Nigeria is one of those countries that really benefits from these geopolitical shifts that we’re seeing?

I think the moves that are currently being made with keeping a very safe infrastructure to fight financial crime is really top of mind. Nothing, I think, will turn away business faster than the perception that those types of strong controls are not in place. I think also the work that the Central Bank does to promote fiscal soundness is also really key and managing the currency provides a lot of comfort to outside investors and businesses.

About Nigeria, I think of it as the top tier in the region, a country that has been booming for a long time, more advanced than so many other markets in Africa and even in the world, honestly. I think about the connectivity Nigeria has with the world, direct flights to different centres, access and so on. The pace of change here as the world evolves, to me, calls for the need for that standard to be reinforced in a tremendous way.

You will see other players start to show up. You will see people want to take advantage of natural resources, access to human capital. In one way, my view is that Nigeria needs this. It needs to support the poverty to affluent ratio, becoming more equal. So that will promote jobs and the nature of connectivity across the country. It will also help pursue support, financial literacy and much more for the underbanked communities. I think the work that the government has done to promote digitisation and mobile banking has really helped Nigeria leapfrog over other countries. That penetration really does support the unbanked and provides greater access to trade and all sorts of commerce.

Many countries don’t have that. And that’s something that is definitely encouraged to keep on going and maintain leadership in that space. And then it enables the Fintechs and the payment aggregators to operate here. They also know they’re operating in a strong regulatory environment, which is important and will continue to promote greater financial inclusion.

Kemetian:
Nigeria’s economic reforms have improved transparency that has helped restore confidence in Africa’s most populous nation after years of stagnation. In this exclusive interview, Patricia Sullivan, managing director, Global Head Institutional Cash Management at Deutsche Bank, Germany’s largest bank, described how the lender has been instrumental in connecting growth regions with correspondent banking solutions, Deutsche Bank’s long-standing relationship with Nigeria as well as how the various policies of the government are stabilising the economy.

BusinessDay

Interview excerpts:

What would you say has been the impact of the currency reforms that Nigeria has implemented since 2023? Have the reforms restored Nigeria on the global map?

I think the reforms have been a significant improvement in further opening up the country to globalisation. Some of the negative impacts, for example when exchange restrictions were too limited, led to financial crime risk with efforts to intentionally evade local controls and reporting requirements for what was legitimate business.

Reforms leading to a more rational environment is definitely positive from our perspective so that access and safety are achieved. If I may, it actually allowed a sense of organisation in the system of transactions, because with the FX caps that were in place, people who needed to access currency for good business were doing this in an underground way to try to import, export, to try to support socioeconomic. The perception that this gave to the world is that there’s an underground banking system and systemic lack of transparency.

But in fact, it was just good people, good businesses trying to promote access to markets and goods and so on in Nigeria. So it really has opened up the Nigerian market and really changed the perception that international banks had.


There’s been a flurry of positive news in Nigeria recently. The First Abu Dhabi Bank, for instance, which happens to be one of your partners as well, is opening an office in Nigeria. Does it mean the reforms are luring in foreign investors?

Yeah. I mean, Nigeria is growing in leaps and bounds. Also, with the geopolitical shifts that are happening, you see more trade partners moving here, and it makes sense that other banks would now want to develop a presence here. So, we’re likely to see even more banks follow – I wouldn’t be surprised.

We’re happy to say we have a longstanding history here and know the market very well, and that’s something our clients really rely on. Plus, our Deutsche Bank global network is vast, and that opens up access to corporates and businesses here to get access to other corridors around the globe. But I expect that you’re not only going to see that here in Nigeria, but in some of the other countries in West Africa that are very rich in minerals and other natural resources.


Foreign direct investments remain key for the economy to grow sustainably but that has been slow to react to the reforms. Is Deutsche bank seeing considerable interest from its FDI partners in terms of just setting up in Nigeria?

As I mentioned, Deutsche Bank does a lot of investment to support major projects here, as well as working with our corporate clients headquartered outside of Nigeria who are facilitating business with Nigerian counterparties and they rely on Deutsche Bank to create that access and the necessary support to grow businesses here. So international investments are coming back and more multinationals will move in if current development continues.

I think it’s also a factor not only of the growth potential in this country, but also the reforms that have taken place at the government level. Not only what you’ve already mentioned in terms of FX, but in terms of the country really strengthening its anti-money laundering and counterterror financing rules and regulations that provide comfort for businesses to operate and invest here and reflected in the country being removed from the FATF grey list in October last year. And I think the central bank has been a very strong proponent of creating a safe and sound infrastructure to support our direct investment.


What more would you advise that the government does in addition to the reforms that we’ve already implemented to ensure that Nigeria is one of those countries that really benefits from these geopolitical shifts that we’re seeing?

I think the moves that are currently being made with keeping a very safe infrastructure to fight financial crime is really top of mind. Nothing, I think, will turn away business faster than the perception that those types of strong controls are not in place. I think also the work that the Central Bank does to promote fiscal soundness is also really key and managing the currency provides a lot of comfort to outside investors and businesses. About Nigeria, I think of it as the top tier in the region, a country that has been booming for a long time, more advanced than so many other markets in Africa and even in the world, honestly. I think about the connectivity Nigeria has with the world, direct flights to different centres, access and so on. The pace of change here as the world evolves, to me, calls for the need for that standard to be reinforced in a tremendous way.

You will see other players start to show up. You will see people want to take advantage of natural resources, access to human capital. In one way, my view is that Nigeria needs this. It needs to support the poverty to affluent ratio, becoming more equal. So that will promote jobs and the nature of connectivity across the country. It will also help pursue support, financial literacy and much more for the underbanked communities. I think the work that the government has done to promote digitisation and mobile banking has really helped Nigeria leapfrog over other countries. That penetration really does support the unbanked and provides greater access to trade and all sorts of commerce.

Many countries don’t have that. And that’s something that is definitely encouraged to keep on going and maintain leadership in that space. And then it enables the Fintechs and the payment aggregators to operate here. They also know they’re operating in a strong regulatory environment, which is important and will continue to promote greater financial inclusion.

https://businessday.ng/interview/article/germanys-largest-bank-says-reforms-restoring-confidence-in-nigerian-economy/

SkyBizzy:
These things only happen on papers, it doesn't translate to reality

yarimo:
Eze finishing of agulu village Mr peter obi please if you don't understand what they are saying don't disgrace yourself in reacting biko.

Kemetian:
https://businessday.ng/interview/article/germanys-largest-bank-says-reforms-restoring-confidence-in-nigerian-economy/

Mattswaggz:
All this and many more was heard during bubu administration only for same praise singers/propagandist to turn on him as soon as he left office. .

Dogalmighty17:
Una and who? An economy in which the minister of finance cannot account for over 1.1 trillion naira of borrowed funds? The ministry of health got only 38 million naira last year out of its request of 236 billion naira.

Cajal:
Only a beer palour economist will disagree
Nigerian made a right choice
They dodged a disaster

Luminary1:
A big pot of lies! A trade off is happening someplace somewhere.

musicwriter:
Tinubu s reform will pay off in the long run

JuanDeDios:
You don't have to like Mr Tinubu (I don't) to admit that he's done some good on the economy. It's in security and the health sector that he has not done well.

joseph1832:
I believe so. Seeing that people are complaining about food stuff being cheap, now that's a first in the history of Nigeria. 🙌

Dogalmighty17:
Una and who? An economy that the minister of finance cannot account for over 1.1 trillion naira of borrowed funds? The ministry of health got only 38 million naira last year out of its request of 236 billion naira.

JuanDeDios:
It's not. How old are you? In a sector where government sector nonexistent, farmers have always had it bad whenever low food prices come around.