Nigeria showing least progress among emerging markets – PWC
PricewaterhouseCoopers (PWC) on Wednesday said the nation’s financial system is showing least progress out of seven emerging markets.
It also said Nigeria’s financial system is significantly impeding growth.
But it said Nigeria and six others have performed well on private sector lending.
The seven emerging markets are Brazil, China, India, Indonesia, Mexico, Nigeria and South Africa.
This assessment was contained in PWC brief on growth ratio and the direction for specific financial systems, which was released to the media in Abuja.
The assessment highlights considerable room for further improvement in key areas, ranging from financial inclusion to pensions and protection.
The report said: “This can’t be said about the other African country in PwC’s assessment. Not only has Nigeria by far the highest percentage of its population living in poverty, its financial system is also showing the least progress of all seven emerging markets.
“In five of the eight key areas, Nigeria’s financial system scores significantly below PwC’s fit-for-purpose targets, holding back inclusive and sustainable growth. However, the success of Nigeria’s auto-enrolment pension model is a bright spot.”
The report, however, said Nigeria and six others have performed well on private sector lending.
It added: “In the PwC research, all seven emerging markets perform well on private sector lending, which is known to drive growth.
“With the exception of Brazil, the banking spread (difference between bank lending and deposit rates) in the emerging markets is low, improving borrowers’ ability to service debt.
“Another key area in which most of the seven emerging markets do reasonably well is controlling the size of their banking system. Only the size of China’s banking sector – compared to its economy – could raise systemic concerns.”
PWC asked all the seven emerging markets to improve their financial system
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