Latest KPMG Survey Reveals Pressing Issues that are Keeping Nigerian CFOs Awake
Foreign exchange availability, taxation and COVID-19 are the three most important ‘stay-awake’ issues currently facing Chief Financial Officers (CFOs) in Nigeria. This is according to the 2021 CFO Outlook Survey by KPMG Nigeria, a copy of which was obtained by Business Elites Africa.
According to the survey, CFOs of Nigerian companies also said that they are pessimistic about any possible economic growth in the Nigerian economy during the remaining half of 2021. They are, however, optimistic about the growth prospects in their respective organisations and industries.
More Details of the Survey
Besides the above mentioned ‘stay-awake’ issues, the Chief Financial Officers who participated in the survey also highlighted the inconsistency in Nigerian government policies and cost management as other issues of concern to them.
But the survey wasn’t just characterised by concerns and complaints. Amid the concerns, the Chief Financial Officers also mentioned that they have adopted certain strategies to ensure that their companies remain profitable. For instance, following the devastating impacts of the pandemic on Nigeria’s macro and micro economics, CFOs responded by adopting cost optimisation strategies, digitisation and technology. See what Access Bank’s CFO, Oluseyi Kumapayi, said to this effect.
‘’We deliberately reduced and are still reducing our service cost by launching campaigns to drive customers to adopt e-banking channels and instituted cost management initiatives development into the workforce KPIs and currently, business units are incentivized to meet set targets in managing their variable cost portions,’’ Oluseyi Kumapayi said.
Some Cost Management Recommendations for Companies Post COVID-19
- Adopting a Risk Management Approach to Spending
- Automation of Business Processes
- Investment in Cloud Services
- Rethinking Supply Chain
- Remote Working Model
- Business Process Outsourcing (BPO)
Meanwhile, regarding government policies/regulations, the Chief Financial Officer of Food Concepts Plc, Anthonia Agbonifo, was quoted to have said: “government should ensure that policies are created to primarily support the growth of local businesses and assist them to become export friendly. Preferential tax breaks to brand and product exporters should be considered.”
EDITOR’S NOTE: You may read the rest of the survey report right here.
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