Abuja: Banks have appealed to the government to grant tax incentives and breaks to financial institutions financing infrastructure and mining as done in other climes like China and Brazil. Mr. Oliver Alawuba, the Chairman of the Body of Banks’ Chief Executive Officers (CEOs), made the appeal at the 36th Seminar of the Finance Correspondents Association of Nigeria (FICAN) in Abuja.
According to News Agency of Nigeria, the seminar was titled ‘Banking Recapitalisation Towards a One-Trillion-Dollar Economy: The Industry Perspective’. Alawuba, who is also the Group Managing Director of United Bank for Africa (UBA) Plc, emphasized that offering tax incentives for recapitalisation-linked investments and allowing partial Cash Reserve Requirement (CRR) refunds tied to infrastructure financing would help achieve the vision.
He further suggested that creating enabling legislation for long-term capital mobilisation, strategic communications, capacity building, and stakeholders’ engagement are crucial steps toward achieving the one-trillion-dollar economy. Alawuba highlighted that the Central Bank of Nigeria (CBN)’s announcement on banking recapitalisation represents a landmark policy shift, aligning the strength of Nigeria’s financial system with its economic ambitions.
Alawuba stated, “It is a necessary and strategic step toward achieving the vision of a one-trillion economy. As banks, we view this as a compliance issue and an opportunity to re-imagine our role as economic enablers.” He stressed that Nigeria’s path to a one-trillion economy will be defined by how effectively the financial sector mobilises capital, supports critical infrastructure, strengthens the real sector, and accelerates digital transformation.
Despite the optimism, Alawuba noted several challenges to achieving a one-trillion-dollar Gross Domestic Product (GDP) economy, such as regulatory and policy challenges, security concerns, financial accessibility, and inclusion. He pointed out that banks are expected to finance both traditional sectors like oil and gas, agriculture, manufacturing, and emerging ones such as Fintech, Green Energy, and Infrastructure.
Alawuba urged banks to rise in compliance, vision, innovation, and economic stewardship, while also calling on regulators to continue to guide with wisdom and flexibility. “Let us re-imagine banking as a force for national development and let us commit ourselves to building an economy that works for every Nigerian,” he concluded.