The Nigeria Deposit Insurance Corporation (NDIC) has emphasized the importance of banking recapitalization in driving Nigeria towards its goal of becoming a $1 trillion economy, a vision recently outlined by President Bola Tinubu.
Speaking at the Finance Correspondents Association of Nigeria (FICAN) Annual Conference in Lagos, NDIC Managing Director Hassan Bello noted that a recapitalized banking sector would stabilize the financial system and support key sectors of the economy, including agriculture, manufacturing, and infrastructure.
Bello explained that the recapitalization of Nigerian banks would not only strengthen their ability to fund critical sectors but also attract foreign direct investment (FDI), providing the financial foundation needed for sustainable economic growth.
According to him, a robust banking system is essential for Nigeria to achieve its ambitious economic goals, as it can provide the necessary financing for productive sectors of the economy.
Oliver Alawuba, Managing Director of United Bank for Africa (UBA), echoed these sentiments, emphasizing that Nigeria’s journey to a $1 trillion economy requires structural shifts in banking, financial innovation, and sectoral development.
He highlighted that recapitalization is not just about regulatory compliance but about equipping banks with the financial strength to drive economic transformation and withstand both external and internal shocks.
Alawuba further stressed that an expanded capital base would enable banks to finance long-term infrastructure projects and provide low-cost credit to businesses, fostering industrial growth. He pointed out that the current productivity gap in the economy, particularly in manufacturing, needs to be addressed through increased lending to the real sector.
Meanwhile, FICAN National Chairman Chima Nwokoji emphasized the need for recapitalized banks to increase lending to micro, small, and medium-sized enterprises (MSMEs), which would spur entrepreneurship and job creation.
Nwokoji also compared Nigeria’s banking sector with global best practices, such as Singapore’s, underscoring the role of a strong financial system in facilitating economic development.
