The Bank of Industry (BoI) has highlighted the need for Nigeria to significantly enhance its production capacity to achieve a $1 trillion economy by 2026. Isa Omagu, Divisional Head of Services at BoI, made this statement during the 2024 annual conference of the Finance Correspondents Association of Nigeria, held in Lagos under the theme: “Nigeria’s Journey Towards a $1 Trillion Economy: Impact of Banks’ Re-capitalisation, Opportunities for Fintechs and the Real Sector.”
Omagu emphasized that Nigeria’s economic growth is heavily reliant on fiscal and monetary policies and called for increased collaboration between both sectors. He also stressed that the country’s current production levels are inadequate, urging investment in agriculture, infrastructure, and services to reduce dependence on imports and alleviate foreign exchange pressures. “To reach a $1tn economy, we must focus on boosting production capacity,” Omagu stated.
Also speaking at the event, Mr. Bello Hassan, Managing Director/Chief Executive of the Nigeria Deposit Insurance Corporation (NDIC), emphasized the importance of collaboration between banks and fintech companies to drive growth in the real sector. Hassan noted that the Central Bank of Nigeria’s recapitalization initiative is essential for strengthening the resilience and solvency of banks. He stressed that well-capitalized banks are crucial for achieving the government’s vision of a $1 trillion economy.
“The opportunities for real sector growth depend on the availability and affordability of financing. The partnership between banks and fintech companies must be fully harnessed to achieve this,” Hassan said, while also calling on regulators to understand the interconnected nature of financial services and how policies affect the overall system’s efficiency.
Oliver Alawuba, Group Managing Director of United Bank for Africa (UBA), reiterated that Nigeria’s journey to a $1 trillion economy is not just a vision but a shared responsibility. Represented by UBA’s Executive Director of Finance and Risk Management, Ugo Nwaghodoh, Alawuba urged banks, fintech innovators, and regulatory bodies to work together in transforming the economy. “We are on the cusp of a new era defined by innovation, resilience, and sustainable growth. Let’s ensure that the Nigeria of tomorrow is one where prosperity is shared, and opportunities abound,” he said.
Alawuba also highlighted that Nigeria has the largest fintech market in Africa, with a growing number of start-ups offering innovative solutions to address inefficiencies in the traditional banking sector.
The conference underscored the importance of increasing domestic production, leveraging fintech partnerships, and strengthening the banking sector to achieve Nigeria’s ambitious economic goals.
