XN Iraki, an Associate Professor at the University of Nairobi, Kenya, has actually revealed concerns over Nigerias growing influence on the Kenyan economy.Professor Iraki, in a post entitled, Nigerians Are Not Coming, Theyve Already Arrived, released in The Standard, raised the alarm over the impact of Nigerian churches, movies and banks in the country.
He stated the entry of Nigerian lenders into the Kenyan market was well planned.
Professor XN IRaki
By making their banks international, Nigerians – like the British and Americans prior to them – will take advantage of onto other sectors. I am sure you will not see an American, Briton or Nigerian as a cashier in a bank.” Access Banks entry into the Kenyan market is more than the acquisition of a loan provider linked with previous political power wielders. The demand for more bank capitalisation by the Central Bank of Kenya and financial investment in fintech were the very first disruptors. How will local banks compete with such a huge bank?
Iraki was responding to the current sale of Kenyas Transnational Bank to Access Bank of Nigeria, keeping in mind that Access was not the first Nigerian bank to get a foothold in Kenya.
” Guaranty Trust (GT) and UBA already have an existence here,” he states. The teacher also said many Nigerians marrying Kenyan ladies was another grand strategy to get into the countrys market..
The post partly read, “Why is the buyout so substantial to the banking sector and the Kenyan economy? Why didnt we notice it? Is that the last Nigerian purchase? The entry of Nigerian loan providers into the Kenyan.
market was well prepared. It began by softening the Kenyan mind with Nigerian churches and Afrosinema films. That altered the solidified picture of Nigerians as happy-go-lucky and corrupt– an out-of-date image.
” From my interactions, Nigerians are major and focused. Once they set their objectives on something, they typically get it. For every Nigerian caught on the wrong side of the law, 9 others are doing the best thing, not just in their nation, but someplace in the world.
” I recently fulfilled a Nigerian who belonged to parliament in South Africa. In America, they are top administrators in universities, medical doctors, engineers, monetary experts and other lucrative tasks. It has actually been predicted that Nigeria will soon be Africas superpower. And why not? The nation has gone through thick and thin, from coups and anti-coups and even a civil war, like the other superpower – USA.”.
What else will Nigerians go for after our banks? Are banks their Trojan horse into our economy?
” Some observers argue that absence of buffer neighborhoods like Indians and whites might have gotten worse the ethnic contest amongst the huge Nigerian ethnic groups, and recently minorities. I require to make a fact-finding see to Nigeria after Covid-19.
” The other requirement for Nigerian superpower status consists of a considerable population (read market) and an educated elite that has footprints in practically all the countries in the world. Oil did not prove a trustworthy conveyor belt to financial development; all eggs were put in one basket. With Covid-19, the oil curse appears real.
” The best conveyor to Nigerian superpower status is financial services. Oil requires a countervailing force. By making their banks worldwide, Nigerians – like the British and Americans prior to them – will leverage onto other sectors. They can control industries, institutions, sectors – and politics indirectly. I am sure you will not see an American, Briton or Nigerian as a cashier in a bank. Who chooses how the revenues will be shared?
” Access Banks entry into the Kenyan market is more than the acquisition of a lender gotten in touch with former political power wielders. It is likely to disrupt the banking industry further. The demand for more bank capitalisation by the Central Bank of Kenya and financial investment in fintech were the first disruptors. We cant discount Covid-19 in the meantime.
” Remember Access Bank is more capitalised, to the tune of about $18 billion (Sh1.9 trillion). The bank covers 3 continents, 12 countries and has 36 million customers. Compare that with Kenyas biggest bank by capitalisation or consumers. How will local banks compete with such a huge bank? Some could take solace in the reality that the most significant banks in Kenya are native, such as KCB and Equity. Others are merging, including NIC and CBA. However we cant rest on our laurels.”.
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