Diversifying Your Finance Career in Nigeria’s Economy

Last Updated on January 26, 2024

Introduction

In today’s ever-changing economy, diversifying one’s finance career is essential. Nigeria’s economy, the largest in Africa, has enormous potential for growth, but it is also volatile.

Therefore, one must be prepared to adapt and evolve their finance career. In this blog post, we will discuss several ways to diversify your finance career in Nigeria’s economy, including exploring different industries, expanding your skillset, and networking effectively.

Through these strategies, you can secure your financial future, even in uncertain times.

Read: Top Banking and Finance Certifications in Nigeria

Understanding the Current Economic Climate in Nigeria

In Nigeria, the economy has been shaped by a number of factors, including government policies, oil prices, and other external factors.

Today, the Nigerian economy is one of the largest in Africa, and it continues to grow fast. However, the country is facing a range of challenges, from low oil prices to political instability, and these challenges are having a significant impact on the finance profession.

In this blog post, we will analyze the current state of Nigeria’s economy, discuss the impact of factors such as oil prices and government policies, and explain how the economic climate affects finance professionals.

Analyzing the Current State of Nigeria’s Economy

The Nigerian economy is the largest in Africa, with a nominal GDP of over $448 billion.

The country has long been dependent on the oil sector, which has accounted for over 90% of exports and government revenues. However, the country has been working to diversify its economy by investing in agriculture, manufacturing, and services.

In recent years, Nigeria has become a hub for technology startups and other innovative businesses.

Despite the efforts to diversify, the country continues to face significant economic challenges, including inflation, high unemployment, and a lack of infrastructure.

The Impact of Factors such as Oil Prices and Government Policies

Oil prices have had a major impact on the Nigerian economy.

The country’s heavy reliance on oil exports has made it vulnerable to fluctuations in the international oil market.

When oil prices are high, the Nigerian economy thrives, but when oil prices fall, the country faces significant headwinds.

In recent years, the Nigerian government has also implemented a number of policies aimed at boosting economic growth and diversifying the economy.

These policies have included tax breaks for businesses, investment in infrastructure, and efforts to encourage entrepreneurship.

How the Economic Climate Affects Finance Professionals

The economic climate in Nigeria has a significant impact on finance professionals. As the Nigerian economy has evolved, so too has the role of finance professionals.

Many finance professionals now work in the technology and startup sectors, helping innovative businesses to grow and expand.

However, the challenges facing the Nigerian economy have also made it more difficult for finance professionals to do their jobs effectively.

Low oil prices, inflation, and political instability can all make it harder to manage finances, raise capital, and make investments.

The Nigerian economy is facing a range of challenges, from low oil prices to political instability. T

These challenges are having a significant impact on the finance profession, making it harder for finance professionals to do their jobs effectively.

However, despite these challenges, the Nigerian economy continues to grow and diversify, and there are many opportunities for finance professionals in a range of industries, from technology startups to traditional banks and finance firms.

Read: Ethics and Compliance Roles in Nigerian Banks

Traditional Finance Roles in Nigeria

Finance roles are crucial in any economy, and Nigeria is no exception.

Traditional finance roles refer to job positions that have existed for a long time and have formed the bedrock of the finance sector in Nigeria. These roles include:

1. Accountants
   
   
2. Auditors
   
   
3. Bankers
   
   
4. Investment Bankers
   
   
5. Financial Analysts
   
   
6. Treasury Analysts

The roles above have their advantages and limitations in Nigeria’s economy:

Advantages of Traditional Finance Roles

1. Steady Income: Traditional finance roles like banking, auditing, and accountancy offer job security and a predictable source of income.
   
   
2. Structured Career Paths: Most traditional finance roles have a clear career progression path and a framework that guides how employees can move up the ladder.
   
   
3. Transferable Skills: Skills like accounting, financial analysis, and banking are universal, and employees can use them to transition to other sectors.

Limitations of Traditional Finance Roles

1. Technological Disruption: Traditional finance roles are prone to automation and disruption by new technologies like Blockchain, Artificial Intelligence, and Robotic Process Automation (RPA).
   
   
2. Limited Room for Creativity: Most traditional finance roles have strict rules and guidelines that employees must adhere to, leaving little space for innovation and creativity.
   
   
3. Little Exposure to Business Functions: Traditional finance roles can be narrowly focused on numbers and accounting, limiting an employee’s exposure to business functions like marketing, sales, and strategy.

Examples of Popular Finance Jobs in Nigeria

Accountants

Accountants in Nigeria perform financial analysis and reporting, bookkeeping and budgeting, tax planning and compliance, and financial risk management.

The demand for qualified accountants is high in Nigeria, with several professional bodies offering certifications like ACCA, ICAN, and CIMA.

Auditors

Nigeria Auditors provide independent and objective assessments of a company’s financial statements, internal controls, and compliance with regulations.

Auditors can work in accounting firms, consulting firms, or in the public sector.

Read: Choosing Between Corporate and Retail Banking in Nigeria

Bankers

Bankers in Nigeria work in commercial, investment, and microfinance banks.

They provide financial services like deposits, loans, investments, and foreign exchange transactions. Bankers in Nigeria must be licensed by the Central Bank of Nigeria (CBN).

Investment Bankers

Banking in Nigeria works in the capital markets, advising companies and governments on mergers and acquisitions, IPOs, bond issuances, and equity offerings.

Bankers must have strong analytical and communication skills and must be able to work under pressure.

Financial Analysts

Financial analysts in Nigeria analyze financial data to help companies make investment decisions.

They use tools like Excel, Bloomberg, and other financial software to create financial models and forecasts. Financial analysts can work in banks, consulting firms, or in corporate finance.

Treasury Analysts

Treasury analysts in Nigeria work in treasury departments of companies or banks.

They manage cash flows, foreign exchange risks, and investment portfolios.

Treasury analysts must be able to work with complex financial instruments and have good risk management skills.

Basically, traditional finance roles in Nigeria have their advantages and limitations, but they remain crucial in the finance sector.

As the economy evolves, financial professionals must diversify their skills and embrace new technologies to remain relevant in the industry.

Read: Is Investment Banking the Right Fit for You?

Alternative Finance Careers in Nigeria

Many job seekers looking for careers in the finance industry often limit their options without realizing that there are numerous alternatives to traditional roles.

In Nigeria, non-traditional finance careers abound, providing an extensive array of options for individuals interested in the industry. Here are some examples of alternative finance careers:

1. Financial Advisor
   
   
2. Investment Analyst
   
   
3. Financial Analyst
   
   
4. Risk Manager
   
   
5. Financial Content Developer
   
   
6. Cryptocurrency Analyst
   
   
7. Compliance Officer
   
   
8. Project Manager

While these alternative careers may seem non-traditional, they come with several advantages and disadvantages. Here are some of them:

Advantages

1. Wider Career Opportunities: Alternative finance careers open doors to various industries, including startups, private equity, and asset management firms.
   
   
2. Unique Skills: Non-traditional finance roles often require unique skills that can set employees apart from their peers, boosting their career prospects.
   
   
3. Flexibility: Many alternative finance careers grant employees flexibility in their work schedules, including the opportunity to work remotely.
   
   
4. Different Work Environment: Non-traditional finance roles allow individuals to work outside a typical office environment, such as in research or analysis firms.

Disadvantages

• Less Common: Non-traditional finance roles are less common, meaning that it may be challenging to find a job opening that aligns with an individual’s skill set and expertise.
  
  
• Lower Job Security: Due to their less common nature, alternative finance careers may provide less job security than traditional roles in the industry.
  
  
• Variable Pay: Unlike traditional finance roles, individuals working in non-traditional finance positions may experience variable or commission-based pay, which may be less predictable or stable.
  
  
• Less Visibility: Non-traditional finance careers may provide less visibility or recognition within the industry compared to traditional roles, making career growth more challenging.

Despite the disadvantages, alternative finance careers offer diverse options for individuals interested in the industry to explore.

With the growth of the Nigerian economy, more opportunities for non-traditional finance roles are emerging. Here are some examples of alternative finance roles in Nigeria:

1. Financial Content Developer: Companies such as Nairametrics.com and Business Day Nigeria seek financial content developers for their websites and social media platforms.
   
   
2. Cryptocurrency Analyst: The cryptocurrency industry’s growth creates a demand for cryptocurrency analysts at companies like Quidax, BuyCoins, and Bundle Africa.
   
   
3. Compliance Officer: The increasing importance of regulatory compliance leads to a rising demand for compliance officers at companies like PwC Nigeria and KPMG Nigeria.
   
   
4. Financial Advisor: Individuals interested in financial advising can work for Wealth Portal, a Nigerian-based wealth advisory firm.

Alternative finance careers provide unique opportunities for individuals interested in the finance industry to explore options outside of traditional roles.

With Nigeria’s growing economy and emerging industries, the importance and diverse nature of alternative finance roles will continue to rise, providing job prospects for individuals with distinct skills and expertise.

Read: Becoming a Financial Analyst in Nigeria: The Journey

Developing a Career Plan

Diversifying your finance career in Nigeria’s economy requires a well-thought-out career plan. Here are some suggestions for those seeking to take the next step:

1. Identify your career objective and goals. What are you looking to achieve?
   
   
2. Research and identify potential career paths in the finance industry in Nigeria.
   
   
3. Assess your current skills and experiences. What can you leverage in your career plan?
   
   
4. Develop a timeline for achieving your goals. Be realistic and flexible.
   
   
5. Consider earning additional certifications, licenses, or degrees to build your expertise.

Now that you have some suggestions, let’s take a look at how to develop a career strategy.

Developing a Career Strategy

A career strategy is an actionable plan for achieving your career goals. Here are some tips for developing one:

1. Research the finance industry in Nigeria and identify job trends, skills, and qualifications needed for success in your chosen field.
   
   
2. Network with professionals in the industry to gain insight and advice on career paths, skills, and job requirements.
   
   
3. Identify potential mentors to guide and support you in your career development.
   
   
4. Create a personal brand that reflects your skills, experiences, and career goals.
   
   
5. Continuously learn and develop new skills to stay relevant and competitive in the job market.

Now that you have developed a career strategy, it’s time to assess your personal strengths and weaknesses.

Assessing Personal Strengths and Weaknesses

Assessing your personal strengths and weaknesses is key to developing a successful career plan. Here’s how to do it:

1. Identify your core strengths, such as problem-solving, leadership, or communication skills.
   
   
2. Assess your weaknesses, such as a lack of experience, skills, or education.
   
   
3. Identify opportunities to leverage your strengths in your career plan.
   
   
4. Develop a plan to address your weaknesses, such as taking courses or earning certifications.
   
   
5. Focus on building and enhancing your strengths to achieve your career goals.

Diversifying your finance career in Nigeria’s economy requires a well-thought-out career plan, a career strategy, and an understanding of your personal strengths and weaknesses.

Follow these suggestions and you’ll be on your way to success.

Continuing Professional Development and Networking

Continuing Professional Development (CPD) and networking are two important aspects of diversifying your finance career in Nigeria.

With the changing nature of the economy and the finance industry, it is important to keep updating your skills and building relationships with others in the field.

CPD for Finance Careers in Nigeria

CPD refers to the process of maintaining and improving the knowledge, skills, and professionalism of finance professionals. It is crucial to the success and growth of your career in the Nigerian economy. Here’s why:

1. CPD helps you stay up-to-date with changes in the regulatory and business environment, which may affect your job role or the services you can offer.
   
   
2. It equips you with the necessary skills and knowledge to adapt to new roles or opportunities that may arise in the future.
   
   
3. Employers often prefer candidates who demonstrate a commitment to CPD, as it shows a dedication to self-improvement and a willingness to learn.

To effectively engage in CPD, consider these tips:

• Identify your learning objectives and create a personal development plan that outlines the resources, courses, and activities needed to achieve those objectives.
  
  
• Make use of available educational resources, such as online courses, industry workshops and seminars, and professional certifications.
  
  
• Network with other professionals in your field to learn from their experiences, and seek out mentorship and coaching opportunities to gain valuable feedback and guidance.
  
  
• Track your progress and continually evaluate your development plan to ensure it aligns with your career goals and objectives.

Networking for Career Opportunities

Networking involves building relationships with individuals and groups of people who can help you grow your career.

It is a powerful tool for expanding your knowledge, gaining new perspectives, and uncovering opportunities for advancement or career transitions.

Here are some tips for effective networking:

1. Identify your professional goals and target your networking efforts towards those objectives.
   
   
2. Join industry associations or professional groups relevant to your field, attend conferences, and participate in online forums to meet other professionals and build relationships.
   
   
3. Be proactive in reaching out to professionals you admire or respect, and seek out opportunities to connect with them through informational interviews, coffee dates, or online channels.
   
   
4. Attend social events and professional gatherings to expand your network and build relationships in a relaxed setting.
   
   
5. Be genuine and authentic in your interactions, and focus on building rapport and establishing trust with others.

It is important to remember that networking is a process, and building relationships takes time and effort.

However, by investing in your network, you can leverage it to access new career opportunities, gain valuable insights and perspectives, and build a strong personal brand within your field.

Continuing professional development and networking are essential components of building a successful finance career in Nigeria.

By staying up-to-date with industry trends, developing new skills, and expanding your network, you can position yourself for career growth and advancement in a rapidly-evolving economy.

Remember that investing in your career is an ongoing process, and the effort you put in today will pay dividends in the future.

So take the time to develop a CPD plan and build your network today, and watch as your career opportunities expand in the years to come.

Discover More: Insider’s Guide: Balancing Work-Life as a Nigerian Banker

Conclusion

Essentially, diversifying your finance career in Nigeria is critical to survival and growth.

With emerging opportunities in various sectors of the economy, finance professionals must take advantage of them.

By investing in personal development and expanding their skills, finance professionals can improve their marketability and stand out from the competition.

To thrive in today’s fast-paced business environment, finance professionals must embrace change, stay abreast of industry trends, and be open to new learning opportunities.

Therefore, we call on finance professionals in Nigeria to take bold steps towards diversifying their careers. It’s time to explore new areas, take on new challenges, and expand horizons.

By so doing, they can not only secure their future but also contribute significantly to the development of the Nigerian economy.

As we wrap up, we encourage finance professionals to be proactive in seeking new opportunities, take calculated risks, and aim to be versatile and adaptable in their career choices. Remember, the sky is just the starting point.