The Chairman of UBA Group, Tony Elumelu has stated that the Nigerian banking sector faces challenges that could hinder its growth and innovation due to high regulatory and compliance costs.
Speaking at the CIBN 17th Annual Banking & Finance Conference on Tuesday. Elumelu highlighted that high regulatory and compliance costs are exerting undue pressure on banks, potentially limiting their contributions to Nigeria’s economic development, according to Nairametrics.
He noted that despite the sector’s critical role in Nigeria’s economy, employing millions and supporting countless businesses, regulatory challenges remain a significant concern.
He emphasized the need for increased dialogue among stakeholders, including government agencies and regulatory bodies, to foster a more collaborative environment and address these regulatory concerns.
Elumelu said “The sector employs millions, provides crucial financial support to countless businesses, and generates income for millions of shareholders. However, the sector faces challenges that impede its growth and innovation, including regulatory and high compliance costs.”
He underscored the urgent need for Nigeria to resolve its infrastructure and energy deficiencies, emphasizing that reliable electricity is crucial for economic growth, industrialization, and education
Elumelu also highlighted the national security crisis, advocating for decisive measures to ensure citizen safety and attract investment, as a secure environment is essential for economic prosperity and business flourishing.
Additionally, he stressed the importance of empowering youth entrepreneurs, calling for both government and private sector investment in initiatives that support young Nigerians in starting businesses and contributing to economic growth.
This approach aims to provide local opportunities and reduce migration.
Elumelu also highlighted the national security crisis, advocating for decisive measures to ensure citizen safety and attract investment, as a secure environment is essential for economic prosperity and business flourishing.
He concluded by showcasing the impact of his ventures through Heirs Holdings, UBA Group, and the Tony Elumelu Foundation, which are making significant strides in power, energy sufficiency, job creation, and youth entrepreneurship across Africa, reflecting his vision of Africapitalism—economic development driven by the private sector for societal benefit.
It was previously reported that the Central Bank of Nigeria in coordination with law enforcement agencies, will closely monitor the recapitalization efforts of the Nigerian banking sector to prevent the influx of illicit financing.
In a recent circular, the CBN emphasized its commitment to enforcing strict anti-money laundering regulations.
The bank, with support from relevant law enforcement bodies, aims to ensure that all capital raised during the recapitalization process remains free from illegal sources.
