UBA MD Calls for Urgent Reforms to Achieve $1trillion Economy

United Bank for Africa’s Group Managing Director, Oliver Alawuba, has emphasized that Nigeria must address pressing challenges to achieve its $1 trillion economy target. He highlighted that the country’s high energy costs and 27.5% interest rate hinder businesses, while cyber insecurity poses a significant threat to the banking sector.

Alawuba stressed the need for collaboration with the Office of the National Security Adviser to combat internet fraud and build a strong platform against cyber threats. He also emphasized the importance of economic diversification, noting that Nigeria needs to transition from a primary economy to a secondary and tertiary economy by adding value to its raw materials.

Furthermore, Alawuba pointed out that Nigeria’s low financial inclusion situation is a problem, as a large chunk of the nation’s currency is outside the banking system. This, he said, would make it difficult for monetary tools to work and deny the country of its $1 trillion target.

The UBA boss also highlighted the significance of infrastructure development, particularly power generation and distribution, to support industries and businesses. He urged the Central Bank of Nigeria to offer incentives to banks for long-term lending to boost economic growth.

According to Alawuba, if Nigeria continues to grow its GDP at the current pace, it will reach $260 billion by 2029, leaving a significant gap of $740 billion to achieve the $1 trillion target. He therefore called for faster policy implementation to reset the economy and drive growth.