Nigerian business leaders have recognized the impact of open financial markets, as highlighted in the report “Resetting Globalization: Catalysts for Change” by Standard Chartered Bank. The report captures the diverse perspectives of business leaders in Nigeria and other markets on the concept of reconstructing the current model of globalization and decentralized finance.
According to the report, 81% of Nigerian business leaders praised the positive impact of open financial markets. The research also shows that Nigerian business leaders are confident in the potential of decentralized finance (DeFi) in promoting an equitable financial system – demonstrating encouraging sentiment towards innovative financial mechanisms.
The world's increasing interconnectedness has led to interdependence of financial markets, a development that has proven particularly beneficial to the developed world, while developing markets continue to lag behind.
Globalization allows small and medium-sized companies to access customers in international markets. In fact, companies no longer necessarily need to be multinational to serve international markets, as individuals can work in one country and live in another.
However, this development has created a crisis as one country/market negatively impacts others in a non-linear manner. An example is the COVID-19 virus and the subsequent drop in oil prices, which resulted in reduced government revenues in the Nigerian market. Due to such situations, there is an increased need to rethink the current global structures in a way that is fair for all.
Notably, only 55% of business leaders in Nigeria believe that foreign investment has contributed significantly to the growth and development of the Nigerian economy.
Furthermore, Nigeria's capital market depth recorded significant growth, increasing from about 6.8% in 2000 to 17.1% in 2018. The removal of a mandatory one-year holding period for foreign portfolio investors in 2012 triggered a notable increase in foreign investment in the stock market .
Developing countries like Nigeria often bear the brunt of climate change due to policies such as environmental dumping – a side effect of globalization. As a result, Nigerian business leaders are sensitive to sustainability practices and 64% believe a global approach is needed to solve climate change.
The report also highlights the perspectives of business leaders in South Africa and Nigeria, where nearly 60% agree with the benefits of leveraging global talent pools for local development. Nigeria has become a bubbling outsourcing hub, partly due to the expansion of English-speaking graduate talent pools, which is set to be further expanded through the National Talent Export Program (NATEP).
An interesting finding has emerged regarding the propensity of emerging market business leaders to invest responsibly. Notably, 46% in Nigeria, 45% in Kenya and 44% in China prioritize responsible investments over higher returns, marking a paradigm shift towards socially conscious business practices.
The research was conducted through 3,054 quantitative online survey interviews and 54 qualitative conversations with global business leaders at the Executive VP+ level in public and private companies across various industries.
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