Tony Elumelu, chairman of the United Bank for Africa (UBA), has identified regulatory and compliance costs as major challenges facing the banking sector in Nigeria.
Gatekeepers News reports that Elumelu, while speaking at the Chartered Institute of Bankers of Nigeria (CIBN) 17th annual banking and finance conference in Abuja, emphasised the importance of the banking sector to Nigeria’s economy. However, he noted that challenges hinder the sector’s ability to contribute to economic growth.
“Our banking sector is a cornerstone of Nigeria’s economy. The transformation of our banking sector over the last few decades, is one of our success stories,” Elumelu said. “However, the sector faces challenges that impede its growth and innovation, including regulatory and high compliance costs.”
Elumelu called for constructive dialogue among stakeholders, including government agencies, regulatory bodies, and banking institutions, to foster a collaborative environment. He believes that by working together, a more resilient banking sector that drives economic growth and supports the aspirations of Nigerians can be built.
“The success of Nigerian banking sector is felt beyond Nigeria. Nigerian banks have become multinationals, leading the sector across Africa, establishing themselves in the world’s financial capitals – and in doing so they have changed how our country is perceived, created pathways to opportunity and set themselves up as role models for our other industries,” he added.
Elumelu’s comments come as the banking sector faces new challenges, including a proposed one-time windfall tax on banks’ foreign exchange (FX) gains, which was announced by President Bola Tinubu on July 17.
