The Group Managing Director/CEO, Mr. Oliver Alawuba.
The 2024 Annual Conference of the Finance Correspondents Association of Nigeria (FICAN) was held on Saturday, September 28, 2024, with industry leaders and financial stakeholders gathered to deliberate on Nigeria’s ambitious goal of becoming a $1 trillion economy. Themed “Nigeria’s Journey Towards a $1 Trillion Economy: Impact of Banks’ Recapitalization, Opportunities for Fintechs, and the Real Sector,” the event featured a keynote speech delivered by UgoChukwu Nwaghodoh, Executive Director, Finance and Risk Management, United Bank for Africa (UBA) Plc, on behalf of the Group Managing Director/CEO, Mr. Oliver Alawuba.
The conference attracted high-profile guests, Mr. Bello Hassan, Managing Director of the Nigeria Deposit Insurance Corporation (NDIC); and representatives from leading financial institutions like Access Bank, Bank of Industry (BoI), Nigeria Inter-Bank Settlement System (NIBSS), and various fintech companies such as Parthan Partners and Palmpay.
In his speech, Alawuba emphasized that Nigeria’s journey to a $1 trillion economy is both bold and achievable. However, he highlighted the necessity for structural shifts in banking, financial technology, and the real sector to drive sustained growth. He outlined three pivotal areas: the recapitalization of banks, opportunities for fintech growth, and the need for a vibrant real sector.
Bank Recapitalization: A Catalyst for Resilience and Growth
Bank recapitalization, driven by CBN policy, was presented as a critical strategy for economic resilience. Alawuba stated that the larger capital bases of Nigerian banks would help stabilize the financial ecosystem, enabling banks to withstand external shocks such as oil price volatility and inflation while expanding credit to key sectors of the economy.
He further elaborated that recapitalization would strengthen the banking sector’s ability to finance long-term infrastructure projects and provide low-cost credit to industries that drive industrialization, such as agriculture and manufacturing.
Fintech: Revolutionizing Financial Services
Alawuba underscored the role of fintech as a driving force behind Nigeria’s financial inclusion efforts, pointing to the country’s large unbanked population as a significant opportunity for growth. He highlighted how fintech has revolutionized financial services by offering solutions like mobile payments and lending platforms, which have brought more Nigerians into the financial system.
Strategic collaborations between banks and fintechs were also emphasized as a pathway to harnessing the strengths of both sectors to drive innovation and deliver hybrid solutions for mobile payments, SME financing, and cross-border transactions.
The Real Sector: The Engine for Diversified Growth
The third focal point of Nwaghodoh’s speech was the real sector, particularly agriculture and manufacturing, which he identified as the engines of diversified economic growth. With agriculture accounting for over 22% of Nigeria’s GDP, Alawuba stressed the importance of improving productivity through technology and innovation, as well as enhancing value chains.
Policy Recommendations
In his closing remarks, Alawuba offered policy recommendations for both the CBN and NDIC. He urged the CBN to implement monetary policies that support key sectors like agriculture and manufacturing while balancing inflation management. He also called on the NDIC to protect depositors and ensure financial stability, especially as the financial ecosystem grows increasingly complex.
In nutshell, Alawuba stated that the journey to a $1 trillion economy is a shared responsibility. He called for collaboration between banks, fintechs, the real sector, and regulatory bodies to shape the future of Nigeria’s economy, ensuring that growth is inclusive, resilient, and sustainable.
The 2024 FICAN conference closed with optimism, as stakeholders expressed their commitment to advancing Nigeria’s economic transformation. The collective will to innovate and grow, they agreed, would be essential in realizing the vision of a $1 trillion Nigerian economy.
