Oliver Alawuba, the Group Managing Director and CEO of United Bank for Africa (UBA) Plc, has urged the Nigerian federal government to grant tax incentives to banks investing in infrastructure and mining, positioning such measures as critical catalysts for national economic transformation.
Speaking at the 36th Seminar of the Finance Correspondents Association of Nigeria (FICAN) in Abuja, Alawuba stressed that legislative support is essential if Nigeria is to meet its ambitious target of becoming a one-trillion-dollar economy.
Addressing a room of financial journalists and stakeholders, Alawuba proposed the introduction of tax incentives tied to recapitalization-linked investments.
“It is a cornerstone for achieving Nigeria’s ambitious goal of becoming a one-trillion-dollar economy,” he stated, emphasizing that enabling legislation, long-term capital mobilization, strategic communication, and active engagement among stakeholders are all needed to drive this agenda forward.
Alawuba, who also serves as the Chairman of the Body of Banks’ Chief Executive Officers, described the Central Bank of Nigeria’s recent recapitalization directive as a “landmark policy” that aligns the financial sector with Nigeria’s economic ambitions.
“It is a necessary and strategic step toward achieving the vision of a one-trillion-dollar economy,” he noted.
“As banks, we view this not only as a compliance requirement but as an opportunity to reimagine our role as economic enablers.”
He outlined a vision where Nigeria’s financial sector plays a central role in shaping the future of the economy.
“Strong economies are built on the foundations of strong banks,” he said, adding that success will hinge on how effectively the sector can mobilize capital, build critical infrastructure, support the real sector, and accelerate digital transformation.
Despite the optimism surrounding recapitalization, Alawuba did not shy away from pointing out the challenges on Nigeria’s path to economic transformation.
He cited policy inconsistencies, security concerns, financial accessibility issues, and low levels of financial inclusion as significant hurdles.
He emphasized that adequate capital buffers are vital for banks to finance both traditional industries like oil and gas, agriculture, and manufacturing, as well as emerging sectors such as Fintech, Green Energy, and Infrastructure.
“Recapitalization is beyond a regulatory action. It is a strategic policy designed to prepare the banking sector for the scale, complexity, and global competition that a trillion-dollar economy demands,” he explained.
Alawuba also used the platform to encourage Nigerian banks to embrace their leadership role in driving compliance, innovation, and sustainable economic development.
He called on regulators to offer guidance with “wisdom and flexibility,” ensuring that policies evolve to support national growth.
“Let us reimagine banking as a force for national development and commit ourselves to building an economy that works for every Nigerian,” he concluded, urging a collaborative national effort to reshape the country’s financial future.
As part of its broader strategy to fortify the banking sector, the Central Bank of Nigeria in 2024 introduced new minimum capital requirements for banks.
Commercial banks with international licenses must now maintain a minimum capital base of N500 billion.
National banks require N200 billion, while those with regional authorization must hold N50 billion.
Merchant banks and non-interest banks are also expected to meet new thresholds ranging from N10 billion to N50 billion, depending on their operational scope.
To ease the transition, the CBN has allowed a 24-month compliance window from April 2024 to March 2026, signaling a significant structural shift in the country’s financial landscape.
