Banks have called on the government to introduce tax incentives and reliefs for financial institutions involved in infrastructure and mining financing—similar to policies implemented in countries like China and Brazil.
Oliver Alawuba, Chairman of the Body of Banks’ Chief Executive Officers (CEOs), made this appeal during the 36th Seminar of the Finance Correspondents Association of Nigeria (FICAN), held in Abuja on Monday.
The seminar was themed: “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 breaks for recapitalisation-related investments and providing partial refunds of the Cash Reserve Requirement (CRR) tied to infrastructure financing would significantly contribute to achieving Nigeria’s one trillion dollar economic vision.
He also highlighted the importance of enabling legislation to support long-term capital mobilisation, as well as strategic communication, capacity building, and stakeholder engagement to drive economic growth.
According to him, the Central Bank of Nigeria’s (CBN) recent directive on banking recapitalisation marks a significant policy move aimed at aligning the strength of Nigeria’s financial system with its ambitious economic goals.
“It is a necessary and strategic step toward achieving the vision of a one trillion dollar economy,” he said.
Alawuba noted that banks view recapitalisation not just as a compliance requirement, but as an opportunity to redefine their roles as key drivers of economic development.
He stressed that Nigeria’s journey toward a trillion-dollar economy hinges on the financial sector’s ability to mobilise capital, fund critical infrastructure, bolster the real sector, and drive digital transformation.
While commending the CBN’s recapitalisation initiative as timely and strategic, Alawuba also pointed out several challenges that must be addressed, including regulatory and policy inconsistencies, security issues, limited financial accessibility, and the need for deeper inclusion.
“Banks today are expected to support both traditional sectors like oil and gas, agriculture, and manufacturing, as well as emerging industries such as fintech, green energy, and infrastructure,” he said.
“Without adequate capital buffers, the sector cannot effectively meet these demands.”
He described recapitalisation as more than a regulatory mandate, but rather a forward-thinking policy designed to equip the banking sector for the scale, complexity, and competitiveness required in a trillion-dollar economy.
Alawuba urged banks to take the lead in compliance, innovation, and economic leadership, while calling on regulators to provide wise and adaptable guidance.
“Let us reimagine banking as a catalyst for national development—and commit ourselves to building an economy that benefits every Nigerian,” he concluded.
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