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Financial Services

The financial services industry (including insurance) contributes over $17 billion every year to Nigeria’s productivity. With humble beginnings since the 1800s, the industry has traversed series of ups and downs and is continually faced with new opportunities and challenges. New trends in mobile banking, digital banking, securities trading and regulation will define the industry in the coming years and only those with a firm understanding and grasp of the issues will be able to compete sustainably.

Sawubona brings a team of professionals and partnerships with a firm understanding of industry trends and issues. With a unique perspective on market research, we help clients extract consumer insights to aid in product development and customer engagement. Our distinctive approach to deploying digital also helps financial services players extract value from their retail and small business segments in ways that contribute tangibly to brand equity and the bottom-line.

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Aso Savings and Loans Plc is one of the most active Primary Mortgage Lenders in Nigeria. The company sought to get feedback from its market with a view to having a better understanding of the kind of real estate investments to make.

Market Research: Sawubona engaged real estate buyers in the Oniru to Ajah axis of Lagos, getting research feedback from over 2000 respondents on effective demand and its demographics (gender, marital status, age, occupation, income and expected purchase price) in the area.

“Sawubona produced a very insightful report for the institution which guided decision making.”

Tope Odugbesan, Head of Structured Finance, Aso Savings and Loans Plc.

Expert View

Capital Market Sentiments will Improve post-2015 Elections

Ugodre Obi-Chukwu, Founder of Nairametrics, one of Nigeria’s most active personal finance blogs, in this interview with Sawubona, predicts the shape of the capital and money markets in 2015 in light of soft commodity prices and a potential for political instability

Considering the sell-offs the market has seen in the second half of 2014, is the capital market the place to create wealth in 2015?

There are opportunities for wealth creation next year. The sentiments are that after the 2015 election the market will stage a rebound towards the second half of the year. Those who take positions early enough will reap.

What is your assessment of the stock market’s performances in 2014?

The Nigerian stock market is on track to become the second worst performer in the world this year. The All Share index has plummeted from a high 41,000 to just under 30,000. The massive sell-offs have been wide spread and is a result of the combination of the fall in crude oil prices and the impending elections next year. Unlike 2009 when we last had a massive crash, stocks are actually massively undervalued and still have sound fundamentals

Again, 2014 saw very minimal activities in terms of listings. Should we expect a different outcome in 2015?

We saw two major listings this year, Seplat and Caverton Group. I believe next year will be better once the election is behind us and companies have a bit more certainty on the direction of the country

If you were to pick 5 companies you expect to list in 2015, what will they be?

It is hard to predict one single company. However, I feel we may see new listings in the Oil and Gas sector, Banking and Industrial Sector.

How do you see the evolution of the fixed income market in 2015, considering the fact that if oil prices remain soft, the government may be very active in the bond market?

The fixed income market is worth over N10 trillion. To put it into context, the stock market has a market cap of about N10 trillion. The fixed income market is seeing massive participation particularly in the retail side with many Nigerians investing in Treasury Bills and FGN Bonds. I feel this is a market that will potentially worth N30 trillion in 5 years. There is massive room for growth considering that it is still dominated by Government securities. Once the private sector increases participation, then you see will massive growth.

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