Institute, Others Highlight Likely Implications of Brexit on Nigeria

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Peter Uzoho

In the wake of British vote to leave the European Union (EU), analysts have highlighted the likely implications of the development on the Nigerian economy.

Speaking at a breakfast session organised by the Chartered Institute of Bankers of Nigeria (CIBN), titled: “Implications of Brexit on Nigerian Banking Industry,” held in Lagos, participants highlighted economic slowdown, consumer market reactions, investors’ relocation, and reconsideration of relationship with Britain as possible fall out of the British withdrawal from the European Union.

Presenting the Communiqué at the end of the session, the Registrar and Chief Executive, CIBN, Mr. ‘Seye Awojobi said: “Economic slowdown is an issue, the issue of consumer market and their reaction is a possibility. The issue of investors having to change their minds where they would get better returns is a possibility. Of course the issue of relationship with Britain is something we need to look at. We’ve heard the issue of credit lines and how it can have affected us. Shift can also be an issue.

“And of course, most us who are not familiar with the dealers of European Union (EU) four pillars, we should also look at it. Very close to that is the issue of people, service, goods and capital; we should be looking at that particular issue.

“We’ve also been told that the numbers of Nigerian professionals that are serving European Union (EU) are even more that other foreigners put together. So what are the implications of this with the withdrawal of Britain as a pillar of the European Union back to Nigeria and that goes to the issue of remittances. Of course we have seen and heard a syndrome of crisis and we need to also look at it.”

He added: “The European Union recession and global recession have been brought to fore. Security is also an issue. What is the North Atlantic Treaty Organisation (NATO) to us in Nigeria; the talk of Boko Haram, the talk of different things. How will Scotland react to NATO.”
Speaking on the sideline of the event Chief Consultant, B.Adedipe Associates Limited, Dr. Biodun Adedipe, said the first consideration would be risks.

“Now, if Britain pulls out of the EU, first and foremost we talk about the size of UK economy, which of course, certainly, is going to be affected because the process has started to slowdown the British economy. That’s the first implication. Now you begin to look at the third risk, which is the issue of British citizens working in Europe.

“We also talk about immigrants working in Europe, and of course, a good of number of them are Nigerians who make remittances back home. Which means, if they eventually lose their jobs in Britain, then that will directly and immediately affect the volume of their remittances at home on the part of Nigeria on the first hand, “he noted.