By Ademola Alawiye

Monday, 3 Jan 2011

Owing to the downturn witnessed in the financial sector of the economy in the last two years, experts have predicted an end to the recession, saying that the crises will not persist in 2011.

The experts, who spoke in separate interviews with our correspondent on Friday, said that the ongoing reforms put in place by the monetary authorities would yield positive steps this year.

The Managing Director, Boaz Management and Financial Strategies Limited, Mr. Oluwole Ibikunle, noted that the reforms put in place by the Central Bank of Nigeria were in the right direction.

He said, ”I see a bright future for the financial system. With all the reforms going on in the sector, coupled with the moves made by the Asset Management Corporation of Nigeria so far, I foresee a lot of improvements in the banking sector this year.

”Also, in terms of loan recovery and the toxic assets AMCON will take away from them, I believe the books of the banks will improve, thereby creating room for them to do their traditional jobs as banks. Besides, the recovery in the United States and other developed countries will have ripple effects on Nigeria.”

Ibikunle, however, said that the recovery rate might be slow but would be far better than the previous year’s.

He said, ”The necessary reforms have been put in place. Activities in the sector may not be restored the way they were before, but it will be better than 2010. There will definitely be a rebound of activities this year. This year‘s election will also determine a lot in the country‘s economic landscape. It ia also important to know that if a good leader emerges, then good decisions that will favour the masses will be made.”

The Managing Director, Treasure Capital and Trusts Limited, Mr. Tom Achoda, told our correspondent in a telephone interview that the future looked pleasant for the banks, but, however, said that the fiscal authorities must adopt fiscal discipline.

Source: Punch