Stakeholders in Nigeria Strategise to Minimise Brexit Effect on the Country’s Economy

The Chartered Institute of Bankers of Nigeria (CIBN) along with other key financial stakeholders, has mulled strategies to guard against the impact of United Kingdom’s exit (UK) from the European Union on the nation’s economy, as negotiations commence.

The Director, Monetary Policy, Central Bank of Nigeria (CBN), Moses Tule, at a breakfast session on implications of BREXIT on Nigerian banking industry, said the number of professionals in the UK is more than the total number of Nigerian professionals living and working in Nigeria, pointing out that in all ramifications, Nigeria will have to feel the pinch of the BREXIT.

“Whether it is the financial sector or other sectors of the economy, it must reverberate. I must say that the earlier we begin to talk about what we must do in terms of strategizing the way out, the better for the country. It is going to have an impact on remittances of Nigerians is Diaspora and that is quite big. But it is not all gloomy, what could be a bit fearsome is the political fallout of the BREXIT,” he said.

The Chairman of Council, CIBN, Professor Segun Ajibola, said the UK occupies a very pivotal position in global trade, politics and economic alignment, saying that BREXIT will definitely have a spill over effect on global international economic relations.

He added that most commonwealth countries still look up to UK for leadership and direction, stressing that BREXIT has sociopolitical and economic considerations globally.

“It has implications on embassies of diplomatic relations, it has implications with European Union, trade agreements, currencies and exchange rate regimes.

This forum is to sensitize ourselves and the entire system about the implications of BREXIT and our operations as a key sector of our national economy,” he said.

In his words, “The situation throws open a number of pressing issues such as lending and borrowing relationships entered into under the aegis of euro and European Union. The impact on assets and liabilities denominated in Great Britain pounds sterling and euro currencies. The BREXIT will also have an impact on remittances of non-governmental organizations and agencies globally. As a financial sector it is time we start putting our heads together so that we will not be caught unaware and also adopt innovative strategies for the sector.

The Chief Consuiltant, B. Adedipe Associates Limited, Dr. Biodun Adedipe, said BREXIT has created a lot of uncertainties, which affects business and capital formation, saying that there is an expected economic slowdown in U K, which would affect asset values in terms of stocks, commercial real estates and the likes.

He noted that BREXIT would also affect consumer and investors’ confidence, adding that, there are many investors in the financial markets in the UK that have started dumping bonds in the UK moving their bonds to other parts of the country.

“The BREXIT would also bring about a shift of trade, which is another transaction destination away from Britain and that would affect income of Nigerian banks that have always gotten from the British market,” he said.

Partner and Head, Management Consulting Unit, KPMG, Mrs. Bisi Lamikanra, believes that nobody really knows how BREXIT would play out in the Nigerian economy, saying that all Nigeria can do is to talk about BREXIT in two dimensions which is to study the impact on the macro environment and the four pillars of the EU framework.