BOI, Parthian Highlight Key Drivers for Nigeria’s $1tn Economy Ambition
Nume Ekeghe
As Nigeria positions itself to become a $1 trillion economy by 2026, leaders from the Bank of Industry (BoI) and Parthian Partners have stressed the importance of increasing domestic production and successfully recapitalising the banking sector to ensure sustained growth.
Speaking at the 2024 annual conference of the Finance Correspondents Association of Nigeria (FICAN) in Lagos, Isa Omagu, Divisional Head of Services at BoI, underscored that a boost in production capacity is essential to meet the country’s economic goals.
“To reach a $1 trillion economy, we must focus on boosting production capacity,” Omagu declared, highlighting agriculture, infrastructure, and services as critical sectors needing investment. He pointed out that continued reliance on imports not only hinders Nigeria’s progress but also exacerbates pressure on foreign exchange reserves.
“The economy relies on both monetary and fiscal policies, which must work in tandem. While monetary authorities focus on stabilising prices, fiscal governance must play an active role,” he added, emphasising the need for coordinated policy efforts,” he said.
Speaking, Chief Finance Officer of Parthian Partners, Mr. Olayinka Arewa, expressed optimism regarding Nigeria’s ongoing banking recapitalization efforts. This exercise, mandated by the Central Bank of Nigeria (CBN), aims to fortify financial institutions to support the country’s ambitious economic aspirations.
“We are very optimistic about the successful outcome of the recapitalisation exercise,” Arewa remarked, likening the current reforms to the transformative banking consolidation of 2004, which reshaped the financial landscape and positioned Nigerian banks to compete globally.
“Back then, the minimum capital requirement was $250 million. Today, we’re looking at $300 million, factoring in exchange rates. The banking sector has matured significantly since then, and this new exercise will be equally transformative,” he added.
