Nigeria must sustain a minimum annual GDP growth rate of 10 percent to achieve its target of becoming a $1 trillion economy by 2030, according to Oliver Alawuba, Group Managing Director of United Bank for Africa (UBA). This comes as the Central Bank of Nigeria (CBN) currently values the economy at approximately $250 billion.
Speaking on “Banking Re-capitalisation towards a $1 trillion Economy” at the 36th Finance Correspondents and Business Editors Conference in Abuja, Alawuba emphasised the need for bold reforms, strategic investments, and inclusive policies to unlock Nigeria’s economic potential. “For Nigeria to get there, clearly the country needs to grow in double digit, and the minimum double digit you can get is 10 percent,” he said.
Alawuba praised the alignment of fiscal and monetary policies, especially the recent focus on bank recapitalization in line with the $1 trillion vision. “That was the first time we are seeing an alignment of the monetary policies to the fiscal policies and the vision of the government, which for me, is very good,” he noted. He added that recapitalisation was not due to weak banks, but to ensure the sector supports economic growth.
However, he warned that achieving this goal requires deliberate actions. “This economy needs a transformation that will propel growth to a minimum of 10 percent… the 10 percent is achievable if certain deliberate steps are taken.” He cited the exchange rate as a major factor dragging down GDP, projecting that without intervention, Nigeria’s GDP could only reach $260 billion by 2029.
He further identified high inflation, exchange, and interest rates as key headwinds, using a metaphor to stress the urgency of intervention: “So if someone is in the hospital… on emergency, you make sure the person is stabilised first… You have to first bring him to life.”
Alawuba acknowledged the CBN’s recent success in addressing macroeconomic challenges. Highlighting regional comparisons, he noted, “Some countries in Africa that do not have the resources Nigeria has… are growing their GDP up to seven percent.”
Earlier in her keynote address, Ms Emem Usoro, Deputy Governor, Corporate Services, Central Bank of Nigeria observed that as Nigerians work towards building a $1 trillion economy, consideration must be made for the recapitalisation of the banks to be able to fund, finance and power the economy and favourably compete globally with its peers in other climes.
Her words, “today, our economy is valued at approximately $250 billion. As we aspire to build a one trillion dollar economy, all hands must be on deck to push with strong ideas to sustain this vision that has very noble capabilities of making our economy develop faster and improve the quality of lives of our citizens.”
Represented by Hakama Sidi Ali as the Acting Director of Corporate Communications at the Central Bank of Nigeria (CBN), Usoro also noted that if the current protectionist development approach by the US and other big economies continues to pervade the global system, Nigeria should particularly pay significant attention to bank recapitalisation to ensure that “our banks are strong, resilient and stable enough to carry out financial intermediation, and the much-needed financing of development projects and programmes.”
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