The Bank of Industry has stressed the importance of enhancing Nigeria’s production capacity to reach a one trillion-dollar economy by 2026.
The bank believes that boosting manufacturing and production capabilities is essential for driving economic growth and competitiveness in the global market.
This initiative aims to create jobs, attract investment, and improve overall economic stability.
The Divisional Head of Services, BoI, Isa Omagu, 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 Real Sector”, according to The Punch.
He noted that Nigeria’s economy relies heavily on fiscal and monetary policies, urging collaboration between both sectors.
He emphasized that the country’s current production levels are insufficient and cautioned against overreliance on imports if Nigeria aims to achieve economic robustness.
“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.
Meanwhile, the Managing Director/Chief Executive of the Nigeria Deposit Insurance Corporation, Mr Bello Hassan, along with other stakeholders, emphasized the importance of collaboration between banks and fintech companies to drive growth in the real sector.
They believe that such partnerships can enhance access to financing and support sustainable economic development.
Hassan stated that the current recapitalisation initiative of the Central Bank of Nigeria must be effectively implemented.
According to him, this collaboration is essential for enhancing the resilience, solvency, and capacity of Nigerian banks to absorb economic shocks.
He emphasized that it would enable banks to effectively support the nation’s economic development by fulfilling their role as the cornerstone of financial intermediation.
Hassan highlighted the importance of strong and well-capitalized banks in supporting the current administration’s ambitious vision of growing Nigeria’s economy to $1 trillion.
“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, represented by the Executive Director of Finance and Risk Management at UBA, Ugo Nwaghodoh urged the banking sector, fintech innovators, the real sector, and regulatory institutions to collaborate closely 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.
