The Bank of Industry (BoI) has emphasized the need for Nigeria to enhance its production capacity if it aims to achieve a $1 trillion economy by 2026. Speaking at the 2024 annual conference of the Finance Correspondents Association of Nigeria (FICAN) in Lagos, Isa Omagu, the Divisional Head of Services at BoI, stressed the importance of reducing the country’s reliance on imports and bolstering domestic production.
Themed “Nigeria’s Journey Towards a $1 Trillion Economy: Impact of Banks’ Recapitalisation, Opportunities for Fintechs and the Real Sector,” the conference attracted top financial sector stakeholders, who outlined the necessary steps to ensure Nigeria’s economic growth.
Omagu highlighted that the nation’s heavy dependence on fiscal and monetary policies must be supported by increased production in key sectors such as agriculture, infrastructure, and services. He warned that Nigeria’s current production levels are insufficient to achieve a robust economy, stressing that boosting production capacity would ease pressure on foreign exchange and reduce dependency on imports.
“To reach a $1 trillion economy, we must focus on boosting production capacity,” Omagu noted, calling for targeted investments in strategic sectors.
Also speaking at the event, Managing Director and Chief Executive Officer of the Nigeria Deposit Insurance Corporation (NDIC), Mr. Bello Hassan, underscored the role of the banking sector in Nigeria’s economic transformation. He emphasized the importance of collaboration between banks and fintech companies to drive growth in the real sector, which is essential for sustainable economic development.
Hassan further highlighted the Central Bank of Nigeria’s recapitalization initiative, which aims to strengthen the resilience and capacity of Nigerian banks to support the country’s economic ambitions. “The recapitalization must be effectively implemented to enhance the ability of Nigerian banks to absorb shocks and continue playing their role as key drivers of financial intermediation,” Hassan said.
He added that well-capitalized banks are essential to supporting President Bola Tinubu’s vision of a $1 trillion economy, stressing that affordable and accessible financing for the real sector is key to achieving this goal.
In his remarks, the Group Managing Director of United Bank for Africa (UBA), Mr. Oliver Alawuba, represented by UBA’s Executive Director of Finance and Risk Management, Ugo Nwaghodoh, reiterated that Nigeria’s journey towards a $1 trillion economy requires a collective effort. He called on the banking sector, fintech innovators, real sector players, and regulatory bodies to work together to drive the necessary transformation.
“We are on the cusp of a new era, one that will be defined by innovation, resilience, and sustainable growth,” Alawuba said. “Let us take this opportunity to collectively shape the future, ensuring that the Nigeria of tomorrow is one where prosperity is shared, opportunities abound, and our economy stands as a beacon of growth on the global stage.”
Alawuba also pointed out that Nigeria has the largest fintech market in Africa, with a growing number of start-ups providing solutions that address inefficiencies in the traditional banking sector. He noted that the collaboration between fintech and banks would be crucial in supporting the country’s economic goals.
As Nigeria continues to pursue its ambitious vision of becoming a $1 trillion economy by 2026, stakeholders at the conference agreed that the country must focus on enhancing its production capacity, promoting innovation, and ensuring strong collaboration between key sectors.
