Nigeria’s banking sector is entering 2026 with stronger liquidity buffers and an improving operating environment, setting the stage for increased lending, provided credit growth is managed prudently.
This was stated by Olusegun Alebiosu, CEO of First Bank of Nigeria Ltd., at the Nigeria Economic Outlook 2026 held on Tuesday in Lagos, reported by Nairametrics.
The forum, themed “The Great Calibration: Mastering Resilience in an Era of Asynchronous Growth,” examined Nigeria’s macroeconomic prospects amid global uncertainty.
Alebiosu said the country was entering a new phase of macroeconomic stability, supported by easing inflation, improving manufacturing output, and renewed investor confidence.
He highlighted that lower interest rates and the ongoing banking sector recapitalisation would significantly boost credit expansion in 2026.
“Banks now have more liquidity, and the environment is improving. Lending will naturally increase, provided we avoid reckless credit decisions,” he said.
Alebiosu added that the outlook points to a gradual but clear economic recalibration driven by policy discipline, financial-sector reforms, and renewed momentum in productive sectors.
He noted that economic reforms were beginning to stabilise markets, enhance investor confidence, and unlock new growth opportunities across key sectors of the economy.
Despite persistent inflationary pressures, currency realignments, and external shocks, Nigeria has demonstrated resilience through innovation and structural reforms, positioning the economy for sustained recovery.
Alebiosu described the annual economic outlook forum as a strategic platform for shaping ideas, sharing insights, and identifying pathways for inclusive and sustainable growth.
He reaffirmed FirstBank’s commitment to national development, noting that the institution’s 131-year legacy remains anchored on strong capital buffers, digital transformation, and effective financial intermediation.
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“Nigeria’s competitiveness will depend on disciplined reforms, investment in human capital, scalable infrastructure, and strong public-private collaboration,” he said.
He added that deeper partnerships between the public and private sectors would be critical to unlocking growth opportunities, while the forum would provide practical guidance on managing volatility and identifying sectors driving growth.
The FirstBank CEO also urged Nigerians in the diaspora to reconsider holding savings in foreign currencies, noting that returns on naira-denominated assets were increasingly outperforming foreign holdings.
“With an appreciating naira, keeping money abroad is a waste of time,” he said. Alebiosu identified rising industrial activity and the decentralisation of power generation as key catalysts for real-sector growth.
He also noted that declining food and fuel prices signalled easing market distortions, while stronger external reserves and rising foreign inflows had improved Nigeria’s resilience to volatile capital movements.
“If 10 billion dollars in hot money leaves today, we can pay and not blink,” he added. Looking ahead, Alebiosu projected economic growth of between 7% and 10% in 2026, including during the election period.
“There will be no crisis. The economy is racing, and after the election, you will see accelerated growth far higher than we have ever seen,” he said.
The outlook comes as First HoldCo Plc announced on Monday that First Bank of Nigeria Limited (FirstBank) has successfully met the Central Bank of Nigeria’s minimum regulatory capital requirement of N500 billion, reinforcing the lender’s financial strength ahead of the March recapitalisation deadline.
The announcement aligns with broader efforts by Nigerian commercial banks to comply with the apex bank’s new capital thresholds.
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