The total value of transactions across e-payment channels declined by 1.9 percent to N48.64 trillion in June compared to N49.58 trillion recorded in May.

In their analysis of the broad implications of the new policies on businesses, customers and strategy in both the short term and in 2024 at the July 2023 diet presentation in Lagos, Bismarck Rewane and the Financial Derivatives Company (FDC) Think Tank, in their report, said this was partly due to the decline in consumer demand and spending as inflation bites hard.

The FDC Think Thank also said value of transactions is likely to decline further in July due to exchange rate swings.

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According to the report, the developments in the exchange rates market will lead to increased top line performance for banks, but fintechs will compete for market share, increased yields on investment securities, robust loan portfolio and increased interest on loan and advances.

The rates unification will equally result in high operating expenses for banks due to high inflation weighing on bottom line performance, to be offset by strong revenue growth. It will also result in robust capital position, which will encourage banks’ continuous expansion.

There will be moderation in non-performing loans due to weighty exposure to the oil and gas sector.

According to the FDC, fuel subsidy removal will result into low consumer purchasing power and reduced individual deposit portfolio; robust loan portfolio for banks with high exposure to the oil and gas downstream and high operating cost, while exchange rate unification will lead to high forex risk for banks with large Eurobonds.

It further noted that banks will benefit from increased foreign capital inflows, hike in electricity tariffs, heightened cost of operations will weigh on margins and net income.

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