The Central Bank of Nigeria (CBN) has emphasized the need for resilient and stable banks in achieving the nation’s $1 trillion economy target by 2030, as outlined by President Bola Tinubu. During the 36th CBN Seminar for Finance Correspondents and Business Editors in Abuja, the Deputy Governor of Corporate Services, Ms. Emem Usoro, highlighted that the ongoing bank recapitalization effort is crucial for this goal. She noted that strong banks are essential for financing development projects and enhancing global competitiveness, as Nigeria’s economy, currently valued at around $250 billion, must grow substantially in the coming years.
Usoro further pointed out that reaching the $1 trillion milestone would require robust planning, clear policy direction, and commitment from all stakeholders. She stressed that recapitalization efforts would strengthen Nigeria’s financial system, improve intermediation, and foster healthy competition among banks, ultimately driving economic growth. The CBN’s goal is to ensure that banks are equipped to support large-scale projects, such as infrastructure development, that will play a vital role in powering the economy forward.
Dr. Olubukola Akinwumi, Director of Banking Supervision at CBN, outlined the incentives for bank recapitalization, including the ability to handle larger transactions and take on more significant infrastructure financing. He mentioned that the government’s focus on sectors like agriculture, manufacturing, and infrastructure further aligns with the CBN’s efforts to encourage banks to increase lending to these critical areas. The bank’s engagement with the industry aims to ensure that Nigerian banks are prepared to fuel the economy’s expansion.
However, some experts, including UBA Managing Director Oliver Alawuba, expressed concerns about the feasibility of the $1 trillion target, citing the country’s current growth rate of 3.8 percent, which is far below the required 10 percent. Alawuba also suggested that Nigerian banks should be entrusted with managing some of the nation’s external reserves to further build confidence in the sector. This proposal, if implemented, could significantly contribute to achieving the $1 trillion economy target, but the path ahead remains challenging.
Source: Vanguard