The Group Managing Director of United Bank for Africa (UBA), Oliver Alawuba, has called for a shift in Nigeria’s regulatory approach to banking supervision—from punitive to supportive oversight—arguing that such a model would better enhance the performance and capacity of financial institutions.
Speaking at a Central Bank of Nigeria (CBN) seminar organized for the Finance Correspondents and Business Editors Association of Nigeria (FICAN), themed “Banking Recapitalisation Towards a Trillion Dollar Economy” and held at Ibeto Hotel, Abuja, Alawuba emphasized the need for collaborative engagement between regulators and operators.
“Supportive supervision strengthens institutions,” Alawuba said. “It’s not about relaxed regulation, but about working together to achieve stability, growth, and innovation within the sector.”
He urged Nigerian regulators to draw inspiration from countries like India, Indonesia, Brazil, and China—economies that have successfully transitioned from primary resource dependency to industrial and service-driven growth.
“India, with a population exceeding 1.4 billion, continues to post over 6% annual GDP growth by strategically investing in services and manufacturing,” he noted.
He also referenced Brazil’s growing aerospace sector and Indonesia’s strides in agriculture and industry as examples of what is possible through intentional policy support and institutional development.
“In fact, the plane that brought me from Lagos to Abuja was manufactured by Brazilian professionals—proof of their industrial advancement,” he said.
Alawuba further called for policy-backed support for Nigeria’s tech ecosystem, suggesting the creation of a local equivalent to Silicon Valley. He highlighted the successes of Nigerian e-commerce startups and stressed that intentional government intervention could scale up these gains significantly.
“There must be deliberate investment in tech infrastructure. With the right support, Nigerian entrepreneurs can compete globally,” he said.
He also pointed to the immense potential of contract manufacturing, noting that many global luxury brands outsource their production to countries like Turkey and Egypt.
“Some of these brands don’t own a single factory—they rely on contract manufacturers. Nigeria can do the same and become a global production hub,” Alawuba added.
In conclusion, he expressed optimism about Nigeria’s economic prospects, provided the right strategies are implemented.
“Look at Morocco—they only started their transformation a few years ago and have made huge progress. Nigeria can do even better. We have the talent, the market, and the natural resources. We just need to get it right.”
The CBN forum brought together stakeholders from across the financial sector, with discussions focused on strengthening the role of banks in achieving Nigeria’s $1 trillion economic vision.
Leave a Reply