Physical Address
304 North Cardinal St.
Dorchester Center, MA 02124
Nigeria Needs to Go Beyond Banking to Reach $1 Trillion Economy, Says Afrinvest
Nigeria’s Path to $1 Trillion Economy: The federal government’s plan to achieve a $1 trillion economy in shaping the global financial landscape has caused Afrinvest to urge the FG to grow beyond the banking sector.
This was stated by the Group Managing Director of Afrinvest, Chioke Ike, at the launch of its 2024 Banking Sector Report, themed Recapitalisation: Catalyst for a $1 Trillion Economy?’
Nigeria’s Path to $1 Trillion Economy
The Central Bank of Nigeria, ahead of announcing the new capital requirements of the banks, said the banks needed to be stronger and more stable to drive the $1tn economy projected by President Bola Tinubu.
Afrinvest’s group managing director acknowledged the numerous benefits of recapitalization, including enhanced lending capacity, increased foreign investment attraction, and better risk management.
However, he cautioned that the banking sector alone would not be sufficient to facilitate the overall economic growth required for Nigeria to achieve its ambitious economic vision.
The managing director went on to highlight the crucial role of human capital development. He referenced the examples of countries with higher GDP per capita and human capital indices to back his assertion.
https://web.facebook.com/share/v/8A7mWJDJ3y9mUPJC
The examples he gave included Mexico, Indonesia, and Turkey. He highlighted that Nigeria could reach similar levels of economic growth and development.
However, he said the country must prioritize investment in its people and prioritize human capital development initiatives.
Nigeria’s Desire For $1 Trillion Economy Requires A Lot Of Strategies Beyond Banking
Chioke Ike also stressed that Nigeria possesses the necessary data and information to effectively manage its economy.
However, for the country to reap the benefits of this wealth of data, he stressed that its political leaders must develop the discipline to be humble and attentive to the insights that can be gleaned from it.
He said, “Nigeria’s Path to $1 Trillion Economy starts with discipline to be humble and attentive.”
The Acting Director of Financial Policy and Regulations, Mr John Onoja, who represented CBN Governor, Olayemi Cardoso, maintained that the central bank was committed to meeting the $1tn economy target.
Also Read: CBN Get Court Orders to Collect Customer Social Media Handles
“We are glad that the present administration has set this target, and we are committed to supporting it,” he mentioned.
He also mentioned that the CBN was actively engaging with the banks to review their capital plans and facilitate a smooth recapitalization process.
In pursuit of this goal, he explained that the CBN is collaborating with other relevant institutions, such as the Nigeria Deposit Insurance Corporation (NDIC), the Securities and Exchange Commission (SEC), the Nigerian Exchange (NGX), and the National Assembly, to ensure that the recapitalization exercise is carried out in a manner that is effective, efficient, and in compliance with applicable regulations.
