Tim Adams, the president of IIF, said one of the main hindrances the country faces is looking at various means of financing.
“International banks, which have traditionally played a role of channelling resources here, face enormous regulatory burdens and probably won’t play the kind of role they have played in the previous years or decades.”
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This will, however, create an opportunity for investment to come from the country either through rallying savings with the local population or through the continent.
“It’s really about putting the capital to work for infrastructure needs whether its transportation, agriculture, housing or power.”
One of the other key discussion points at the summit was about energy and power. As technology continues to change, from financial services to the way we order products, the financial services industry has to find a way to keep up.
“Many of the banks who were here today understand the importance of providing mobile banking. However, they’ll be some institutions, globally, that don’t get it and will fall behind but technology is radically changing the way that we mobilise capital,” he said.
Adams highlighted one of the issues being that most technology companies and internet service providers going into financial services are not being regulated the same way banks are. The regulations after the financial crisis, was however, necessary.
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“We have a better sounder system because of it. But it is a burden on many institutions, it’s very expensive for compliance and that means banks aren’t doing what they used to be doing with respect to lending,” said Adams.
“That’s why you see technology companies getting into and disintermediating the institutions and banks really struggling to meet the regulatory burdens.”
He added that he sees great potential in Nigeria but the country needs to orchestrate the right environment right for domestic and foreign investment as well as building the economy.
Adams said that the country remained attractive to investors.
“We’re here because it’s the largest economy in Africa, we have many member firms here and the growth potential is enormous. No matter where I travel in the world people ask and are excited about investing in Africa and they mention Nigeria specifically,” he said.