Tinubu Taps Banking Community For Economic Growth

President Bola Ahmed Tinubu has called on members of the banking community led by the Chartered Institute of Bankers of Nigeria (CIBN) to join forces with his administration’s renewed commitment to restore confidence in the Nigerian economy.

Speaking at the 17th annual banking and finance conference of the CIBN in Abuja yesterday, President Tinubu said his administration is taking measures to reduce the myriad problems facing the nation’s economy, including inflation, exchange rate volatility, and oil price volatility, while improving fiscal management.

Represented at the event by Vice President Kashim Shettima, Tinubu said the theme of the conference, “Accelerating Economic Growth and Development: The State of Play and the Way Forward,” rightly came when the nation grapples with interrelated challenges.

“We have taken bold steps to reform the macroeconomic environment. Our focus is on restoring confidence in the Nigerian economy through measures aimed at reducing inflation, stabilising the foreign exchange market, and improving fiscal management.

“Though painful in the short term, the removal of fuel subsidies is designed to free up budgetary resources for critical investments in infrastructure and social services, frequent adjustment of the monetary policy rate, a move aimed at curbing inflation and fostering a more market-oriented exchange rate system,” he stated.

Earlier, the president/chairman of the council, CIBN Prof. Pius Deji Olanrewaju said that while the current administration of Tinubu has put in place various policies to make recent economic growth a reality, “we acknowledge that there is also quite a significant role the banking industry should play.

Our sector is at the heart of our economic engine providing much-needed funds for businesses to thrive.”

Professor Olanrewaju said Nigeria must grow at a rate high enough to lift over 80 million people out of extreme poverty, a growth he said is a key driver of poverty reduction with a reduction in rural poverty.

“The banking industry is not only a participant in but also a driver of our nation’s economic growth and development. Let us embrace this opportunity with vision and determination by working together- private sector, government, civil society, and individuals to build a prosperous, and resilient economy for Nigeria,” the CIBN leader stated.

He said the banking sector has contributed significantly to the growth of the economy through various intervention programmes. For instance, he said the sector’s net credit to the private sector as of July 2024 was N74.9 trillion compared to N46.3 trillion in July of 2023 and N37.5 trillion in 2022. These signify a 99.6% increase in domestic credit to the private sector over the last two years.

President Tinubu restated his commitment to upgrading Nigeria’s infrastructure to support economic growth. He said the administration is prioritising the digital economy because it will drive innovation and enhance financial inclusion.

“We are expanding broadband penetration and encouraging the growth of tech startups through initiatives such as the Digital Nigeria program. For example, we currently train three million Nigerian youths in digital technology and essential skills and then deploy them to innovation hubs.

“These efforts are designed to create jobs, increase productivity, and make financial services more accessible to Nigerians in all corners of the country. It is essential to state that we are committed to achieving a 70% digital literacy level by 2027 through innovative approaches in delivering initiatives, continuous collaborations and stakeholder engagement.”

On the way forward, the president called for collaboration across all sectors, including the government, private industry, and civil society organisations, saying, “To achieve sustained economic growth, we must intentionally align our policies and actions with the changing global landscape.

“The government is committed to implementing reforms to enhance macroeconomic stability, reduce inflation, and support infrastructure development”.

President Tinubu expressed hope that the conference will provide a platform for the sharing of ideas, exchange of knowledge, and exploration of innovative solutions to the challenges bedevilling the country.

“The conversations during this event will allow us to dissect the critical problems affecting our financial system and economy, identify growth opportunities, and collectively shape the future of banking and finance in Nigeria,” he added.