Oliver Alawuba, the Group Managing Director (GMD) of United Bank for Africa (UBA), emphasised the necessity for Nigeria to achieve double-digit gross domestic product (GDP) growth to reach its ambitious goal of a $1 trillion economy by 2030.
Gatekeepers News reports that he made the remarks during the 36th Finance Correspondents and Business Editors Seminar, which was organised by the Central Bank of Nigeria (CBN) in Abuja, under the theme “Playing the Global Game: Banking Recapitalisation Towards a One-Trillion Dollar Economy.”
“We need to grow at double digits to get to one-trillion dollars in 2030. We need 10 percent growth — which is achievable,” Alawuba said.
Alawuba highlighted the importance of establishing robust institutional frameworks and garnering government support to facilitate bank investments in critical infrastructure that can drive accelerated economic growth.
He noted that the Nigerian banking sector currently contributes only 12 percent to the country’s GDP, in contrast to the 70 to 100 percent contribution seen in more developed economies.
“The plan so far is highly beneficial for the economy. Strong banks require strong profits. Strong banks are crucial for building the strong economy we desire,” Alawuba said.
“It’s important that banks remain profitable so they can build a very robust reserve to support the economy and the banks themselves.”
He said the opportunities in Nigeria are immense, therefore, sustainability will not be a problem.
“This is because banks will now be able to raise, even with the capitalisation we have undertaken, sufficient capital to truly elevate this economy to the next level,” the GMD added.
Alawuba also raised concerns about the current 50 percent cash reserve ratio (CRR), describing it as a potential barrier to economic growth.
“A 50 percent CRR is not sustainable if we are going to talk about the growth of the economy,” he said.
“I am happy that inflation is responding to the actions of the CBN. So, as the inflation rate comes down, we expect the CRR to come down.”
The GMD also highlighted the need for greater financial inclusion, improved security, and investment in infrastructure — particularly roads, ports, and power — to drive long-term growth.
Alawuba called for tax incentives and a shift from a primary (resource-based) economy to a more diversified, industrialised model that can create jobs and boost productivity.
