The Central Bank of Nigeria (CBN) has emphasized the urgent need for a stronger, more resilient banking sector to drive Nigeria’s ambition of reaching a $1 trillion economy by 2030, a target set by President Bola Tinubu.
Speaking during the 36th CBN Seminar for Finance Correspondents and Business Editors in Abuja, the Deputy Governor for Corporate Services, Ms. Emem Usoro, highlighted that the ongoing recapitalization of banks is central to realizing this economic goal. Represented by the Acting Director of Corporate Communications, Mrs. Hakama Sidi-Ali, Usoro stated that Nigeria’s financial institutions must be robust enough to support economic growth and development projects.
“As we work toward building a $1 trillion economy, recapitalizing banks is essential to ensure they are strong, resilient, and stable enough to fund critical sectors and compete globally,” she said.
Currently valued at around $250 billion, Nigeria’s economy would need significant scaling to meet the 2030 target, requiring broad collaboration across government, the private sector, and financial institutions.
Adapting to a Changing Global Economy
Usoro also pointed to evolving global financial dynamics, particularly in light of U.S. policies under President Donald Trump, which have reshaped global markets. She stressed that Nigeria must proactively adapt and seize opportunities presented by financial globalization.
In his presentation titled “Banking Recapitalisation Towards a One Trillion Dollar Economy,” Dr. Olubukola Akinwumi, Director of Banking Supervision at CBN, explained that the recapitalization effort aims to position banks to handle large-scale transactions, such as infrastructure financing.
He noted, “The government is already advancing infrastructure concessions. With stronger capital bases, banks will be better equipped to lend to key sectors like agriculture, manufacturing, and SMEs, which are critical drivers of economic growth.”
Akinwumi reassured that the CBN would continue working closely with banks to encourage increased lending to these priority sectors, aligning with government budget allocations for health, education, agriculture, and infrastructure.
Industry Perspectives
Offering an industry viewpoint, Oliver Alawuba, Managing Director of United Bank for Africa (UBA), called on policymakers to entrust Nigerian banks with managing part of the country’s external reserves. He argued that doing so would not only strengthen the domestic banking sector but also support the broader goal of achieving a $1 trillion economy.
Alawuba stressed the importance of building confidence in local banks’ capacity to handle significant financial responsibilities, suggesting that empowering Nigerian banks could enhance the nation’s economic resilience and investment capacity.
Challenges Ahead
Despite optimism, analysts caution that reaching the $1 trillion target may be challenging without sustained reforms, increased investment, and policy consistency.
The CBN reiterated that achieving this milestone will require careful planning, disciplined execution, and unwavering commitment from both public and private sector stakeholders.
