The Bank of Industry (BoI) has underscored the urgent need for Nigeria to enhance its production capacity in order to achieve a one trillion-dollar economy by 2026.
This assertion was made by Isa Omagu, Divisional Head of Services at BoI, during the 2024 annual conference of the Finance Correspondents Association of Nigeria, themed “Nigeria’s Journey Towards a $1 Trillion Economy: Impact of Banks’ Re-capitalisation, Opportunities for Fintechs and Real Sector.”
Omagu emphasized that Nigeria’s economy currently relies heavily on fiscal and monetary policies, urging for a synergistic collaboration between both sectors. He warned that the country’s existing production levels are insufficient and cautioned against an overreliance on imports, which could hinder the goal of achieving economic robustness.
“To reach a $1 trillion economy, we must focus on boosting production capacity,” he stated, advocating for increased investment in agriculture, infrastructure, and services to reduce import dependence and alleviate foreign exchange pressures.
The conference also featured insights from Mr. Bello Hassan, Managing Director and Chief Executive of the Nigeria Deposit Insurance Corporation, who echoed the call for collaboration between banks and fintech companies to foster growth in the real sector. He noted that the importance of the Central Bank of Nigeria’s current recapitalisation initiative, stating it is vital for enhancing the resilience and capacity of Nigerian banks to absorb financial shocks.
Hassan noted, “The opportunities and potentials for growth in the real sector depend on the availability and affordability of financing. To achieve the financing levels needed, partnerships between banks and fintechs must be effectively harnessed.”
He stressed that financial sector supervisors must understand the interconnections among various service providers and how their actions can impact overall financial system efficiency.
Oliver Alawuba, Group Managing Director of United Bank for Africa Plc, declared that Nigeria’s journey toward a $1 trillion economy is a shared responsibility. Represented by Ugo Nwaghodoh, Executive Director of Finance and Risk Management at UBA, Alawuba called for collaboration among the banking sector, fintech innovators, the real sector, and regulatory institutions to drive this transformation.
“We are on the cusp of a new era defined by innovation, resilience, and sustainable growth,” he said, urging stakeholders to collectively shape a prosperous future for Nigeria.
Stating Nigeria’s status as Africa’s largest fintech market, Alawuba pointed to the rapidly growing number of startups providing solutions that address inefficiencies in traditional banking, reinforcing the potential for a transformative economic future.
As stakeholders rally around the goal of a $1 trillion economy, the focus remains on enhancing production capabilities and fostering collaborative efforts across sectors to ensure sustainable growth and development.
