In another intellectual session on VTv, which happened on Instagram Live and hosted by Sam Chidoka, the MD/CEO of Kairos Capital Ltd, the Nigerian banking sector was dissected by Chika Mbonu, a seasoned banker, and a trained engineer.
Chika Mbonu mentioned that our economy was already in distress before the pandemic came around, citing the GDP growth of the country being at 2%and how per capita growth was actually on the negative side. He said that the country was still recovering from the recession when the COVID-19 pandemic hit and exacerbated the issues on ground.
He said he had analyzed two companies based on their correlation with what was on ground and realized that positive correlation to the issue was enough to cause a rise in profit and a negative one would be worst hit. He mentioned that businesses with interests in logistics, telecommunications, etc., were among the top earners while those involved with people moving around, e.g. hospitality, aviation would emerge among the top losers.
Speaking on banking, he spoke about the falling volumes of transactions. He spoke on his analysis, saying that the businesses that fueled the major transactions were all closed up and as such, even digital transactions would not meet up. He then also entered offshore transactions, berating our dependence on oil, putting emphasis on the fact that we could not meet up with oil sales, predicting a backlog of salary payments to civil servants.
He advocated that we look into agriculture, real estate and possibly, IT reskilling. He also advocated for more of digital banking, citing the massive crowding of banking halls on the first day of free movement after the lockdown had been called off. He mentioned that we had to be held accountable for the quality of leadership; asking that we find a way to get involved in the needed skills of the future.
On a final note, he endorsed the VBank app, recommending it to everyone who was watching the interview. He mentioned that he would also be opening an account with the bank.