June 23rd 2016 will be remembered as the day UK vote to leave the EU bloc. The financial industry around the world was shocked by this single outcome. Banks share prices fall on the announcement of the final result of the referendum. London stock market was also affected. But, things will remain as it is for at least two years when UK will formally exit from the bloc.
The Nigerian economic sector that will be most affected is the banking sector where Nigerian banks are highly correlated with some London based international banks who are bound to move some of their businesses over to other EU member nations. Some Nigerians banks have set up offices in the UK just because of it strategic importance in the EU, now that is about to go they will reconsidered their position. Nigerian Central bank financial dealings with London base banks will also be affected, be it in form of foreign exchanges dealings or its foreign reserve savings there. At this very difficult moment for Nigerian banks, Brexit will add to their difficult situation. Thus, clever banks will began immediate move to address the outcome of the vote. Nigerian companies that are planing to sell their shares on London stock exchange are also going to consider their next action in view of current realities on the ground.
Investment by Nigerians in the UK will also be affected as the world fear for recession in the UK economy. Thus, expect desperate moves to diversify investments out of the UK. Many Nigerian real estate investors will also find London less attractive and make move to sell their holdings.But, Nigerian investors holding Gold will smile to the banks as the price of gold has increased around the world. The same applied to Nigerian banks holding gold reserves. Then come Nigerian elites looking for safe heaven for their ill gotten wealth, Britain out of EU will be perfectly OK with that, as it will help cover the losses from exiting the EU. What a fantastic Britain!