The Central Bank of Nigeria (CBN) has said that Nigeria needs strong, stable, and resilient banks if the country wants to achieve the $1 trillion economy target by the year 2030, as set by President Bola Tinubu.
Speaking during the 36th CBN Seminar for Finance Correspondents and Business Editors in Abuja, the Deputy Governor in charge of Corporate Services at CBN, Ms. Emem Usoro, explained that the ongoing plan to recapitalize Nigerian banks is a major step toward achieving that goal.
Ms. Usoro, who was represented by the Acting Director of Corporate Communications, Mrs. Hakama Sidi-Ali, stressed the need for well-capitalized banks that can provide the funding needed for national growth and development.
“With the Nigerian economy currently valued around $250 billion, we must work together to hit the $1 trillion mark. We need clear policies, proper planning, and commitment from all stakeholders,” she said.
She also pointed out that strong banks would improve financial services, encourage competition, and support key projects in sectors like infrastructure and manufacturing.
In his own presentation, Director of Banking Supervision, Dr. Olubukola Akinwumi, said the CBN is working closely with commercial banks to help them meet their Cash Reserve Requirements (CRR) and build stronger capital foundations.
He explained that the recapitalization would help banks handle large transactions, especially in infrastructure, and boost lending to sectors such as agriculture, manufacturing, and small businesses.
Dr. Akinwumi said the CBN is focused on ensuring banks support government priorities like healthcare, education, infrastructure, and food production.
Also speaking at the event, Mr. Oliver Alawuba, the Group Managing Director of United Bank for Africa (UBA), advised the federal government to trust Nigerian banks with managing a part of the country’s external reserves. He said this would help grow the financial sector and boost confidence in local institutions.
“We manage reserves for some other African countries where we operate. Why can’t we be trusted to manage part of Nigeria’s reserves, maybe 10 or 20 percent to start with?” he said.
However, Mr. Alawuba expressed concern that achieving the $1 trillion target may be difficult unless Nigeria’s current economic growth rate of 3.8 percent is increased to at least 10 percent.
