UBA GMD: Double Digit GDP Growth Vital For Nigeria $1 Trillion Economy Goal

UBA GMD: Double Digit GDP Growth Vital For Nigeria $1 Trillion Economy Goal

Oliver Alawuba, the Group Managing Director of United Bank for Africa (UBA), has emphasized that Nigeria must consistently achieve double-digit GDP growth in order to attain its ambitious target of becoming a $1 trillion economy by 2030.

Speaking at the 36th edition of the Finance Correspondents and Business Editors Seminar hosted by the Central Bank of Nigeria (CBN) in Abuja, Alawuba stressed that a 10% annual growth rate is essential — and attainable — to realize the country’s economic aspirations. The event was themed “Playing the Global Game: Banking Recapitalisation Towards a One-Trillion Dollar Economy….READ MORE…

“To reach a one-trillion-dollar economy by 2030, Nigeria needs to maintain a growth trajectory of at least 10 percent annually. This level of growth is possible with the right frameworks and commitment,” he stated.

Alawuba underscored the importance of robust institutional structures and strategic government support to empower the banking sector to finance critical infrastructure that can catalyze accelerated economic development.

He also pointed out that Nigeria’s banking sector contributes merely 12% to the country’s GDP, a stark contrast to advanced economies where the sector accounts for between 70% and 100%. This, he said, highlights the untapped potential of the financial services industry to drive national growth.

“The current recapitalisation initiative is a step in the right direction. Strong banks with healthy profits are essential to building the resilient economy we aim for,” Alawuba noted. “Profitability enables banks to build the reserves needed to sustain both the financial system and the wider economy.”

He expressed optimism about Nigeria’s potential, noting that banks will be in a stronger position to raise capital and fuel growth following ongoing recapitalisation efforts.

However, Alawuba raised concerns about the current 50% Cash Reserve Ratio (CRR), arguing that it could hinder economic expansion. “A 50% CRR is not conducive to long-term growth. As inflation moderates — which we are beginning to see due to CBN policies — we expect a corresponding reduction in the CRR,” he said.

He further advocated for greater financial inclusion, enhanced national security, and significant investment in infrastructure such as roads, ports, and power to support sustainable development.

In addition, Alawuba recommended implementing tax incentives and transitioning from a resource-dependent economy to a more diversified and industrialized one, capable of generating employment and improving productivity.