According to the Bank of Industry, Nigeria needs increase its manufacturing capacity in order to reach a one trillion-dollar economy by 2026.
Isa Omagu, Divisional Head of Services at the BoI, stated this on Saturday at the 2024 annual conference of the Finance Correspondents Association of Nigeria in Lagos, with the theme “Nigeria’s Journey Towards a $1 trillion Economy: Impact of Banks’ Re-capitalisation, Opportunities for Fintechs and the Real Sector”.
He emphasized that the country’s economy was strongly reliant on fiscal and monetary policy, and urged both sides to work together. He also stated that Nigeria’s existing output levels were insufficient, cautioning against overreliance on imports if the country is to attain economic stability.
“To reach a $1tn economy, we must focus on boosting production capacity,” Omagu said, calling for investment in agriculture, infrastructure, and services, which would reduce import dependence and ease forex pressure.
Mr Bello Hassan, Managing Director/Chief Executive of the Nigeria Deposit Insurance Corporation, and other stakeholders emphasized the importance of collaboration between banks and Fintech startups in driving real sector growth.
He stated that the current recapitalization program of the Central Bank of Nigeria must be efficiently implemented.
According to Hassan, this is vital to improve Nigerian banks’ resilience, solvency, and capacity to absorb shocks while continuing to assist the nation’s economic development by properly fulfilling their role as the fulcrum of financial intermediation.
He noted the role of strong and well-capitalised banks in supporting the current administration’s bold vision of growing Nigeria’s economy to a $1tn must be appreciated by the relevant players in the financial sector.
“The opportunities and potentials for growth of the real sector depend, among others, on the availability and affordability of financing the economy. To achieve the desired level of financing required by the real sector, the window offered by banks in partnership with fintechs must be adequately harnessed,” he said.
He, however, stressed the need for supervisors to understand the interconnection among the various financial services providers and how their policies and actions can affect the efficiency and optimality of the overall financial system.
The Group Managing Director of United Bank for Africa Plc, Mr Oliver Alawuba has said Nigeria’s journey to a $1tn economy is not just a vision but also a shared responsibility.
Alawuba, who was represented by the Executive Director of Finance and Risk Management, UBA, Ugo Nwaghodoh, called on the banking sector, fintech innovators, the real sector, and regulatory institutions to work hand-in-hand to drive this transformation.
“We are on the cusp of a new era, one that will be defined by innovation, resilience, and sustainable growth. 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,” he said.
According to him, Nigeria has the largest fintech market in Africa, populated by a rapidly growing number of start-ups offering solutions that address the inefficiencies of the traditional banking sector.
