Regulatory and high costs of compliance are impeding the growth and innovations of the banking sector, Chairman of UBA Group, Tony Elumelu has said.
The global investment banker who stated this in Abuja at the Chartered Institute of Bankers of Nigeria (CIBN) 17th yearly banking and finance conference, held that to overcome the challenges banks face, stakeholders – government agencies, regulatory bodies, and banking institutions – must engage in constructive dialogue to foster a collaborative environment.
He stressed that by working together, stakeholders can build a more resilient banking sector that drives economic growth and supports the aspirations of Nigerians.
Elumelu added: “The sector faces challenges that impede its growth and innovation, including regulatory and high compliance costs. To overcome these challenges, stakeholders – including government agencies, regulatory bodies, and banking institutions – must engage in constructive dialogue to foster a collaborative environment. The success of the Nigerian banking sector is felt beyond Nigeria. Nigerian banks have become multinationals, leading the sector across Africa, establishing themselves in the world’s financial capitals – and in doing so they have changed how our country is perceived, created pathways to opportunity and set themselves up as role models for our other industries.”
Speaking under the general theme of the conference, which was ‘Accelerated economic growth and development: The State of Play and the Way Forward,’ Elumelu pointed out that the government must rethink the adoption of ‘palliatives’ as a means of providing temporary succour to Nigerians.
He reiterated the need for the government to focus on exports rather than short-term solutions to the economic problems confronting the country. His words: “As a nation, we import more than we export, and with a manufacturing sector struggling and the continued growth of our population, we require more than just short-term ‘interventions’. We need a comprehensive strategy to support our vast and diverse population and unlock our potential. Nigeria is rich in resources, natural and human. But, time and time again, we have failed to invest in our people and our value chain.”
And by value chain, I mean not just our oil and gas or manufacturing, I mean power, I mean schools, universities, our institutions. All those foundations provide the ecosystem for a country to succeed. A country that does not address its basic infrastructure needs is a country that cannot realise its potential.”
The UBA chief explained that his idea of ‘Africa capitalism’ is the capacity of the private sector not only to drive economic change but to do it in a way that is just and equitable.
For Nigeria to develop its latent talent, Elumelu identified access to electricity, security and focus on youth entrepreneurship as possible areas of concentration.
“Development is impossible without reliable access to electricity. Power is a fundamental resource that impacts every aspect of life – from hospitals to homes and businesses. Nigeria cannot industrialise, and our youths cannot be educated, without ensuring our abundant natural resources are translated into plentiful, robust power for all. It is a power ecosystem that encourages investment and unlocks our economy. To accelerate our progress, we must enable our power sector to guarantee reliable electricity for everyone,” he stated.
On his part, Chairman body of banks’ CEOs and chair of the conference, Oliver Alawuba, said as the participants reflect on the wealth of knowledge, insights, and strategies shared throughout the conference, they must be dedicated to transforming the learnings into action. He added: “Our collective future depends on the steps we take today to innovate, collaborate, and drive progress.”
