Banks, Fintech Must Partner To Activate Nigeria’s $1trn Economic Target’

For Nigeria to achieve the $1trillion Gross Domestic Product (GDP) by 2026, the Nigeria Deposit Insurance Corporation (NDIC) and other financial stakeholders, emphasised on the need for banks and Fintech companies to collaborate and drive the real sector growth.

They stated this at the 2024 annual conference of the Finance Correspondents Association of Nigeria (FICAN) held at the weekend in Lagos, with the theme, ‘Nigeria’s Journey Towards $1 trillion Economy: Impact of Banks’ Recapitalisation, Opportunities for Fintechs and Real Sector’.

The managing director/chief executive, NDIC, Bello Hassan stated that the current recapitalisation initiative of the Central Bank of Nigeria (CBN) must be effectively implemented.

He said this is necessary towards enhancing the resilience, solvency and capacity of Nigerian banks to absorb shocks and continue to support economic development of the nation by efficiently performing their function as the fulcrum of financial intermediation.

He noted the role of strong and well capitalised banks in supporting the current administration’s bold vision of growing Nigeria’s economy to a $1 trillion must be appreciated by the relevant players in the financial sector.

“The opportunities and potentials for growth of the real sector depend, among others, on the availability and affordability of financing the economy. To achieve the desired level of financing required by the real sector, the window offered by banks in partnership with Fintechs, must be adequately harnessed,” he said.

He, however, stressed on the need for supervisors to understand the interconnection among the various financial services providers and how their policies and actions can affect the efficiency and optimality of the overall financial system,

On the role of stakeholders, he emphasised that the vision of growing Nigeria’s economy initiated by President Bola Tinubu, is the starting point for the national policy rethink, stakeholder engagement and realignments of efforts and policies toward achieving the objective.

Hassan highlighted that the foreign exchange rate unification policy has the potential for promoting foreign direct investment, foreign portfolio inflows, increased investor confidence, reduction of budget deficit, and improved sovereign credit ratings.

The group managing director, United Bank for Africa (UBA) Plc, Oliver Alawuba said Nigeria’s journey to a $1 trillion economy is a shared responsibility.

Alawuba, who was represented by the executive director, Finance and Risk Management, UBA, Ugo Nwaghodoh called on the banking sector, fintech innovators, the real sector, and regulatory institutions to work hand-in-hand to drive this transformation.

According to him, Nigeria has the largest fintech market in Africa, populated by a rapidly growing number of start-ups offering solutions that address the inefficiencies of the traditional banking sector.

“Fintech has already transformed how Nigerians access financial services, from mobile payments to lending platforms, the scope is vast. As we march towards a $1 trillion economy, the Fintech Sector is poised to play a crucial role in expanding financial access, driving innovation, and stimulating competition within the broader financial system.”

In his welcome address, the national chairman, FICAN, Mr. Chima Nwokoji, stated that, “there is evidence of global best practices that show that a robust banking system is vital for economic growth. Singapore’s banking sector, for instance, has facilitated its rise as a financial hub and supporting economic growth.”