Alawuba Says Nigeria’s Economy Stabilising as Key Indicators Improve

United Bank for Africa Group Managing Director, Oliver Alawuba, has said improvements in Nigeria’s key economic indicators are providing evidence of increasing macroeconomic stability, but warned that the gains must translate into jobs, affordable credit and improved living standards.

Alawuba, who also chairs the Body of Bank CEOs in Nigeria, said stronger coordination between fiscal and monetary authorities has helped advance the country’s stabilisation efforts amid persistent global economic disruptions.

Speaking at the 19th Annual Banking and Finance Conference of the Chartered Institute of Bankers of Nigeria in Abuja, Alawuba said Nigeria now needs to build on the emerging stability by strengthening institutions and creating an economy capable of absorbing future shocks.

The conference, themed “Building a Resilient Economy in an Era of Disruptions: Imperatives for the Banking and Financial Services Industry,” brought together policymakers, bankers and development-sector officials to examine the financial industry’s role in sustaining economic recovery.

Alawuba said economic resilience should be deliberately incorporated into Nigeria’s policies, infrastructure, supply chains, energy systems, financial architecture and human capital rather than relying on interventions after disruptions occur.

His comments come as Nigeria’s banking industry enters a new phase following the completion of the Central Bank of Nigeria’s two-year recapitalisation programme.

Thirty-three banks met the revised minimum capital requirements after the industry raised N4.65 trillion in new capital during the exercise.

The Securities and Exchange Commission said the funds were mobilised over the 24 months to March 2026, significantly strengthening the industry’s capital base.

The Central Bank said 72.55 percent of the N4.65 trillion came from domestic investors, while international investors accounted for 27.45 percent.

Alawuba said the recapitalisation provides Nigerian banks with greater capacity to withstand shocks while expanding their ability to finance larger projects and support economic activity.

Beyond capital, he pointed to increased spending on technology, cybersecurity and operational resilience across the banking industry as financial institutions respond to rapidly expanding digital transactions and emerging security threats.

However, the UBA chief said stronger banks and better headline economic indicators would have limited impact unless the improvement reaches households and businesses.

He described banks as critical financial shock absorbers and growth partners, arguing that the industry has an important role to play in converting macroeconomic stability into productive investment and broader economic opportunities.

The position was echoed during the conference by government and financial-sector officials, who emphasised the need to move Nigeria’s reform programme from stabilisation towards stronger productive activity.

President Bola Tinubu, represented at the conference, challenged banks to look beyond balance-sheet growth and profitability by directing more financing towards businesses capable of supporting investment, employment and economic expansion, according to UBA’s account of the event.

The government identified affordable credit, financial inclusion, technology and access to long-term capital as important components of the next phase of financial-sector development.

Central Bank Governor Olayemi Cardoso, represented at the conference by Deputy Governor Philip Ikeazor, also stressed the importance of a resilient banking industry to sustaining economic recovery, while World Bank Country Director for Nigeria Mathew Verghis called for more bank capital to reach businesses capable of creating jobs.

For Alawuba, the challenge is increasingly shifting from restoring stability to ensuring that the stronger financial system contributes directly to economic expansion.

He said collaboration between government and the private sector would remain important as Nigeria attempts to consolidate recent macroeconomic improvements while protecting the economy against geopolitical tensions, volatile energy markets, shipping disruptions and other external shocks.

The success of the stabilisation effort, he argued, will ultimately depend on whether improvements in economic indicators translate into tangible opportunities and greater prosperity for Nigerians.