Low commodity prices, exchange rate fluctuations and decline in government spending have left many West Africans under strain. Nigeria, for instance, has experienced a “perfect storm” of economic and political events which have placed significant pressure on the economy.
In order to explore the implications for the restructuring market in 2017, a survey of a cross-section of key restructuring professionals in Nigeria and Ghana to obtain a better understanding of where the industry is now and what their expectations are for 2017. These responders were selected from a mix of commercial banks (47%) and lawyers (53%).
Key themes that emerged from the survey are as follows
- 40.9% of the respondents expect a recessionary or low growth economy in Nigeria and Ghana over the next 12 months mainly due to the impacts of limited government spending, exchange rate fluctuations as well as low levels of foreign direct investment and commodity prices.
- Sectors most at risk to be distressed in the next year are financial services, manufacturing and resources.
- 81% of restructuring teams expect an increase in activity in the next 12 months.
- Protecting the business is ranked as the #1 priority of a restructuring process.
Download the Deloitte West Africa’s 2017 Restructuring Outlook Survey Here