FINANCIAL EDGE: As chairman of FICAN, how do you see this year’s conference shaping the national conversation around economic growth and development?

CHIMA TITUS NWOKWOJI: At this period when several banks are racing to meet up with the Recapitalization directive of the CBN, the FICAN conference will throw up issues around macroeconomic factors that contribute to GDP growth, foreign exchange stability and import substitutions. All these touch on economic growth and development.

Beyond that, the CBN’s efforts to recapitalize banks are crucial in achieving Nigeria’s economic goals, including the target of $1 trillion GDP by 2026 and $4 trillion by 2035
Bank recapitalization and the $1 trillion dollar GDP ambitious target are interconnected strategies aimed at driving economic growth and development in Nigeria.

By recapitalizing banks and targeting a $1 trillion economy, Nigeria can unlock its growth potential, reduce poverty, and become a more diversified and resilient economy. The bank Recapitalization will make banks stronger and well positioned to provide more credit to productive sectors (agriculture, manufacturing, infrastructure).

In the area of improved financial stability, recapitalized banks are better equipped to withstand economic shocks. It will boost foreign investment and domestic investment in the banking sector. The recapitalized banks can adopt robust risk management practices.

FINANCIAL EDGE: What inspired the theme “Nigeria’s Journey Towards $1 Trillion Economy” for this year’s FICAN conference?

CHIMA TITUS NWOKWOJI: Initially, the executive and the conference committee came up with about seven topics drawn from Financial Technology, Banking sector, the creative industry and taxation.

After much deliberations, we decided to look at the most trending topics and how they can be summarized into one. So, we looked at the impact of exchange rate fluctuations on banks’ capital base and how the Recapitalization of banks aligns with the ambitious$1trillion economy target of the federal government.

At the end of the day, we narrowed down to the theme, “Nigeria’s journey towards $1 trillion economy: Impacts of banks’ recapitalization for Fintechs, real sector. “ We chose this topic because it is the conversation in both private sector and government circles. It tells everyone where the economy is headed.

According to data from the International Monetary Fund, Nigeria in 2024 is the 4th biggest economy in Africa. Wikipedia took the IMF data and listed South Africa, Egypt, Algeria before Nigeria. I think that the $1trillion economy when achieved, will help Nigeria reclaim it’s rightful position as Africa’s biggest economy by all indexes. That is the focus.

So, Alacross various sectors of the Nigerian economy, be it Agriculture, Manufacturing, finance, ICT, tourism, transportation; the energy sector, housing, Creative Industries, the dominant discussion is Nigeria’s GDP growth.

And the federal government has set the target and roadmap, which economic agents should follow. That target is to transform Nigeria into a $1 trillion economy by 2030. The project is designed to combat poverty and catalyze sustainable economic growth from the ground up.

So looking at the level of hunger and poverty in Nigeria, FICAN is inspired to stimulate discussion on key aspects that will lead to the success of this laudable target.

There is need to highlight challenges and proffer workable solution. This is because Increased GDP boosts economic size, influence, and global ranking.

A $1trillion economy will help reduce dependence on oil exports, promoting non-oil sectors. It is also expected to create about 5-7 million new jobs by 2026, leading to improved Standard of Living.

FINANCIAL EDGE: What prompted the selection of Mr. Hassan Bello, MD/CEO of NDIC, as the keynote speaker?

CHIMA TITUS NWOKWOJI: The choice of the Managing Director of the Nigeria Deposit Insurance Corporation (NDIC) Mr. Hassan Bello means that we have chosen the institution he represents.

In that regard, we chose NDIC because it supports the Central Bank of Nigeria (CBN) in the bank recapitalization process through Protection of depositors’ funds and maintaining financial stability.

The NDIC conducts risk assessments of banks, identifying potential vulnerabilities. The deposit insurer collaborates with CBN to monitor banks’ compliance and provides financial assistance for resolution of failed banks.NDIC’s support enables CBN to: Strengthen banking sector resilience; enhance regulatory framework and Increased investor confidence.

FINANCIAL EDGE: How do you think Prof. Mustapha Chike-Obi and Dr. Oliver Alawuba’s expertise will enrich the conference discussions?

CHIMA TITUS NWOKWOJI: Mustapha Chike-Obi is the Chairman of Bank Directors Association of Nigeria ( BDAN). Recently, the association complained that The Bank Directors Association of Nigeria, (BDAN) the 70% windfall tax amendment on the finance act is ill-timed and burdensome in light of recent recapitalisation efforts in the banking sector.

Having signed the press release, we believe that he knows all the details about banks’ ability to scale the Recapitalization hurdles. So his expertise even as Chairman of Fidelity Bank will come to play. Combined with the MD of UBA, Mr. Oliver Alawuba, I believe that their contributions will enrich the conference discussions.

FINANCIAL EDGE: Can you share more about the panel discussion’s sub-themes and the participating organizations?

CHIMA TITUS NWOKWOJI: Yes. Baring last minute changes, we are expecting representatives from the Central Bank of Nigeria (CBN), the NIBSS, Access Bank, BOI, Parthian Partners, the NDIC to be in the panel session.

They will among other things breakdown the keynote address and the paper to be delivered by our guest speaker. While disecting the main topic, they would be required to narrow down on sub-themes such as “Role of real sector,the Fntech in achieving $1 Trillion dollar Economy,” and “Creating bigger, stronger Banks to support $1 Trillion economy.

FINANCIAL EDGE: How do you see bank re-capitalisation impacting Nigeria’s journey to a $1 trillion economy?

CHIMA TITUS NWOKWOJI: Recapitalized banks will play a crucial role in achieving Nigeria’s $1 trillion economy goal. Think of banks that have more liquidity to lend to the productive sectors comprising Micro, Small and Medium scale Enterprises.

This is the sector that has the ability to support inclusive economic growth. Recapitalized banks will perform greater financial intermediation and boost economic activities, job creation, and greater GDP growth.

There are already estimates that recapitalized banks will lead to 7-10% annual GDP growth rate as well as enhanced tax revenue. By recapitalizing banks, Nigeria can chieve $1 trillion economy goal.

Stronger Banks will conveniently support Education, healthcare, and skills development. They will catalyze innovation and entrepreneurship. Banks are already supporting startups, SMEs, and innovation hubs.

Bigger banks means bigger support. There is potential for Policy coordination between the CBN, Ministry of Finance, and other stakeholders. There will be Encouragement of public-private partnerships as well as great focus on critical infrastructure projects.

FINANCIAL EDGE: How does FICAN plan to engage with stakeholders and policymakers to influence economic policy decisions?

CHIMA TITUS NWOKWOJI: Going by the Constitution of FICAN as obtained from its national headquarters in Lagos, papers delivered at the conference together with robust discussions should form position papers that are sent to concerned ministries for action.

But beyond that, discussions from the topic usually form useful resources for incisive articles, news reports, and reference materials for policy makers and captains of industry. That is the level of engagement that I can assure you we have successful carried over the years till date.

FINANCIAL EDGE: What are FICAN’s primary objectives, and how does this conference align with those goals?

CHIMA TITUS NWOKWOJI: The aims and objectives of FICAN are well documented in our Constitution. I will try to highlight some: To provide a base for the training and re-training of our members particularly and, indeed, other finance journalists on informed reporting of business activities; to provide a forum for the interaction of finance reporters, editors from the electronic and print media nationwide; To provide a platform for mutual cooperation and assistance in our professional and personal lives.

To organize every year, at the least, the FICAN Annual Lecture or conference with the aim of contributing to the quest for economic, social as well as political development of Nigeria; To issue informed statements on government/ official policies as occasion warrants; To liaise and work in close collaboration with like-minded associations unions in furtherance of the quest for a more humane Nigerian society. These are the basis of for establishing FICAN in 1990.

FINANCIAL EDGE: What key takeaways do you expect participants to gain from the conference?

CHIMA TITUS NWOKWOJI: Frankly speaking, expectations are high that experts will be able to explain how the new capital base of banks after the Recapitalization exercise will be insulated from exchange rate fluctuations.

For instance, the N25billion used to recapitalize the banking sector between 2004 and 2005 is worth less today due to depreciation of the naira. So, the key take away would be how Nigeria should strengthen other macroeconomic factors that contribute to the depreciation of the naira.

Also, participants to know the reason for banks recapitalization and how it connects to the $1 trillion economy goal. Participants will be able to compare the current Bank Recapitalization with the last recapitalization in 2004, the merger and acquisition, and impact on unemployment.

Another takeaway would be the rol of fintechs in the whole $1 trillion economy goal. Conversation. What are the key real sector players with potentials to contribute to the $1 trillion economy goal? These and other key issues that would come up during the question and answer session would form basic takeaways.