Abuja, April 14, 2025 (NAN) – Mr. Oliver Alawuba, Group Managing Director of United Bank for Africa (UBA), has stated that Nigeria requires double-digit GDP growth to meet the projected target of a one-trillion-dollar economy by 2030.
Thank you for reading this post, don't forget to subscribe!Alawuba made this assertion at the ongoing 36th Edition of the Finance Correspondents and Business Editors Association of Nigeria (FICAN) seminar in Abuja, organised by the Central Bank of Nigeria (CBN). The seminar’s theme is “Playing the Global Game: Banking Recapitalisation Towards a One-Trillion Dollar Economy”.
He emphasized that a 10% annual growth rate is achievable and essential for Nigeria to meet the ambitious goal, highlighting that strong institutional frameworks and government support are crucial for facilitating bank investments in critical infrastructure to accelerate economic growth.
“We need to grow at double digits to hit the one-trillion-dollar target by 2030. A 10% growth rate is achievable,” Alawuba said.
Alawuba also pointed out that Nigeria’s banking sector only represents 12% of the GDP in terms of total bank assets, compared to other economies where the figure stands at 70% or higher. He suggested that banks could bridge this gap by mobilising deposits, resources, and capital to benefit other sectors.
He further stressed that strong, profitable banks are essential for building a resilient economy. “Strong banks are crucial for building the strong economy we desire. They need robust reserves to support both the economy and their own stability,” he added.
Alawuba also raised concerns over the current 50% Cash Reserve Ratio (CRR), calling it unsustainable for long-term economic growth, and advocated for its reduction as inflation continues to decrease.
Additionally, Alawuba highlighted the importance of addressing security issues, improving financial inclusion, and tackling infrastructure deficits in key sectors such as roads, ports, and power to foster sustained economic growth. He also called for tax incentives and a transition from a primary to a secondary economy to further drive growth.
“We need institutional frameworks and government support to invest in infrastructure and other areas to support the economy,” Alawuba concluded.
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