The Bank of Industry (BoI) has emphasized the urgent need for Nigeria to enhance its production capacity in order to reach the target of a $1 trillion economy by 2026. This was highlighted by Isa Omagu, Divisional Head of Services at BoI, during the 2024 Annual Conference of the Finance Correspondents Association of Nigeria in Lagos.
The event, themed “Nigeria’s Journey Towards a $1 Trillion Economy: Impact of Banks’ Re-capitalisation, Opportunities for Fintechs and the Real Sector,” focused on the pivotal role of financial institutions and production sectors in driving national economic growth.
Omagu underscored that Nigeria’s current production levels are insufficient to support such an ambitious goal, warning against overreliance on imports. He stressed that boosting local production, particularly in agriculture, infrastructure, and services, is essential for reducing import dependence and easing pressure on foreign exchange.
“To reach a $1 trillion economy, we must focus on boosting production capacity,” Omagu stated, calling for increased investments in key sectors that would build a more self-sufficient and resilient economy.
Adding to the discussion, Mr. Bello Hassan, Managing Director/Chief Executive of the Nigeria Deposit Insurance Corporation (NDIC), emphasized the importance of strong banks and fintech collaboration in driving real sector growth. He highlighted that the ongoing recapitalisation initiative by the Central Bank of Nigeria (CBN) is crucial to enhancing the resilience, solvency, and capacity of Nigerian banks to absorb economic shocks and support national development.
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“The current recapitalisation initiative must be effectively implemented to ensure Nigerian banks remain robust and capable of performing their role as the fulcrum of financial intermediation,” Hassan said, noting that well-capitalised banks are vital to achieving the government’s vision of a $1 trillion economy.
Hassan also pointed out the opportunities within the fintech space, urging banks and fintech companies to harness their partnership potential to make financing more accessible and affordable for the real sector. He further stressed the need for regulators to understand the interconnections between various financial services providers and how policies can influence the overall efficiency of the financial system.
In agreement, Mr. Oliver Alawuba, Group Managing Director of United Bank for Africa (UBA) Plc, noted that Nigeria’s journey to a $1 trillion economy is a shared responsibility across the financial sector. Represented by Ugo Nwaghodoh, UBA’s Executive Director of Finance and Risk Management, Alawuba called on the banking sector, fintech innovators, real sector stakeholders, and regulatory bodies to collaborate in driving the transformation.
“We are on the cusp of a new era, one that will be defined by innovation, resilience, and sustainable growth,” Alawuba remarked. He emphasized that Nigeria has the largest fintech market in Africa, with a rapidly expanding ecosystem of start-ups addressing inefficiencies in the traditional banking sector.
He concluded by stating that this collective effort will shape the future of Nigeria’s economy, ensuring that prosperity is shared and opportunities abound, positioning Nigeria as a leader in global economic growth.
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