Nigeria must boost production to achieve $1tn economy — BOI

The Bank of Industry has emphasised that Nigeria must enhance its production capacity to achieve a one trillion-dollar economy by 2026.

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”.

He noted that the country’s economy relied heavily on fiscal and monetary policies, urging collaboration between both sides.

He also said that Nigeria’s current production levels were insufficient, warning against overreliance on imports if the country 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.

Also, the Managing Director/Chief Executive of the Nigeria Deposit Insurance Corporation, Mr Bello Hassan, among other stakeholders, emphasised the need for banks and Fintech companies to collaborate and drive real sector growth.

He stated that the current recapitalisation initiative of the Central Bank of Nigeria must be effectively implemented.

According to Hassan, this is necessary towards enhancing the resilience, solvency and capacity of Nigerian banks to absorb shocks and continue to support the economic development of the nation by efficiently performing their function as the fulcrum of financial intermediation.

He noted the role of strong and well-capitalised banks in supporting the current administration’s bold vision of growing Nigeria’s economy to a $1tn must be appreciated by the relevant players in the financial sector.

“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, who was represented by the Executive Director of Finance and Risk Management, UBA, Ugo Nwaghodoh, called on the banking sector, fintech innovators, the real sector, and regulatory institutions to work hand-in-hand 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.

According to him, Nigeria has the largest fintech market in Africa, populated by a rapidly growing number of start-ups offering solutions that address the inefficiencies of the traditional banking sector.