The Group Managing Director of United Bank for Africa Plc, Mr Oliver Alawuba, has said that Nigeria must grow its economy at a minimum rate of 10 per cent annually if it hopes to achieve the $1tn gross domestic product target set by the Federal Government.

Speaking on the paper “Banking Recapitalization Towards a One Trillion Dollar Economy, The Industry Perspective”

at the 36th Finance Correspondents Association of Nigeria (FICAN) and Business Editors seminar in Abuja, Alawuba pointed out that the country’s current growth rate of 3.84 per cent was not sufficient to achieve the ambitious target by 2030.

He said, “If we continue to grow at the current rate, we will not be able to meet the $1tn GDP target. To achieve it, the economy must grow in double digits, and a minimum of 10 per cent is required. This is achievable, considering that the economy still grew by 3.84 per cent in 2024 despite inflation, exchange rate volatility and insecurity.”

Alawuba noted that many African countries with smaller economies were already achieving stronger growth rates. He cited examples such as Kenya, Rwanda and Tanzania in East Africa, as well as Côte d’Ivoire and the Benin Republic in West Africa, all of whom are experiencing growth of 6–7 per cent.

He commended the Central Bank of Nigeria’s decision to commence another recapitalisation exercise, describing it as a proactive move aligned with the government’s long-term economic vision.

He said the exercise, announced in March 2024 and effective from April 1, 2024, was not due to weakness in the banking sector but to strengthen its capacity to support the country’s transformation.

According to him, the banking industry has evolved significantly since the last recapitalisation in 2005, both in terms of asset size and the complexity of financial transactions.

As such, he said banks needed to be well-capitalised to absorb shocks from inflation, exchange rate depreciation, political risks, and global economic headwinds.

Alawuba stressed the need for stronger collaboration between banks, regulators, the media, and the government to successfully drive growth.

He called for clear policy incentives, effective regulation, and a national reorientation agenda that fosters confidence in the Nigerian economy and its institutions.

He said, “Strong economies are built on the foundation of strong banks. This transformation will depend on how well the financial sector mobilises capital, supports infrastructure, strengthens the real sector, and accelerates digital innovation.”

Highlighting key challenges, Alawuba pointed to regulatory inconsistencies, low ease of doing business, weak contract enforcement, insecurity, limited access to finance, and inadequate infrastructure especially power as major constraints.

He added that high inflation, volatile exchange rates, and interest rate pressure continued to weigh heavily on growth projections.