CIBN logo (file image)
By Valentine Amanze
Nigeria’s banking sector is uniquely positioned to drive sustainable growth, foster innovation and ensure inclusivity across every stratum of society, says the Chartered Institute of Bankers of Nigeria (CIBN).
The President and Chairman of CIBN, Prof Pius Olarewaju, gave the assurance at the 2024 Lagos Bankers’ Night, titled, “Driving National Growth Agenda: The Role of the Banking Sector.”
Olanrewaju, who is the 23rd president and chairman of Council of the institute, explained that the annual Lagos Bankers’ Night was a cherished tradition that offers members a moment to reflect on the collective journey and opportunity to set the stage for future triumphs in the banking industry.
He explained that the theme was a powerful reminder of the role of banks in shaping the nation’s economy.
His words: “As the backbone of the economy, the banking sector is uniquely positioned to drive sustainable growth, foster innovation and ensure inclusivity.”
On the importance of banks, he cited the National Bureau of Statistics report which says Nigeria’s financial services sector, contributed significantly to GDP annual growth rate of 2.98% recorded in the first quarter and 3.19% in the second quarter of 2024.
“We are the engines that power the wheels of commerce, the architects of financial innovation and the custodians of national wealth,” Olanrewaju said.
He said that the CBN report, which indicated that banks loans and support for the private sector rose to about N375 7tr in the first five months of 2024, which is about 74 98 per cent higher than N214 76tr recorded in the same period of the previous year, shows that the banking sector has continued to provide increasing support for the economy.
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The CIBN boss further disclosed that the sector was mandated to unlock the potential of the nation’s vast human and natural resources to fuel entrepreneurship, and to ensure that financial opportunities reach all areas on the country.
“We must harness the power of technology and remain steadfast in our commitment to ethical practices. The strategic direction of our industry must align with the broader goals of national development – creating jobs, supporting small and medium enterprises, driving industrialization, and enhancing the quality of life for all Nigerians.
“It is through our collective efforts that we can transform challenges into opportunities and turn aspirations into realities.
“Our sector’s influence is vast, and with that influence comes the responsibility to act as catalysts for change and progress,” he said.
He disclosed that bankers were not just participants in the economy, stressing, “We are its architects. By leveraging our collective expertise, we can chart a course that leads to enduning prosperity for our country.
“When we perform our expected roles, the banking sector will contribute significantly to Nigeria’s economic growth that has already been projected by IMF to be around 3% by the end of 2024.”
On economy challenges such as high inflation rate, infrastructural deficit among others, Olarewaju called for public private partnership relationship in this respect.
He said, “We need everyone to collaborate as only government cannot solve the problem on ground.
“Today we have some economic challenges. It is not only government that can solve them. There is a need for public-private partnership relationship in this respect.
“We are saying, every one of us, even including you journalists, you have a role to play. It’s not about banking alone. We need support and encouragement from all stakeholders to achieve the growth agenda.
“For the branch Chairman, CIBN, Lagos State, Adeyemo Adeoye, the event has become a perennial platform for networking among bankers in (and outside Lagos State, financial industry leaders, key stakeholders in the Nigerian economy, captains of industries, and it has equally provided prime opportunity for exchange of ideas, while providing leverage for corporate brand visibility and exposures.”
He however applauded the theme of the event, noting that the banking industry has traditionally played a significant role in economic developments.
“Because of the financial aggregation and intermediation functions of the banking systems, its roles are inextricably intertwined with the growth of the economy.”
Quoting Richard Branson, the CIBN chairman described banking as the life blood of the economy, providing the financial oxygen that businesses and individuals need to breathe and grow.
Prof Emmanuel Moore Abolo, the Director General, The Economic Think-Tank Centre, also emphasised the need for collaboration to achieve the growth agenda.
“All the stakeholders in Nigeria need to come together to drive the national growth agenda by pulling all the forces together to one single direction called the vision training access and then everybody is able to contribute,” he said.
He said that the CBN needed to align the monetary policies with the fiscal, which is key, create institutions, play its roles of intermediation, making sure resources are made available for implementation of all the strategic initiatives contained in the agenda.
“Here we try to bring in the banking sector. What can banks do to drive this growth. Our submission is that banks play the role of intimidation.”
He also called for the creation of awareness among Nigerians to galvanise support to achieve success of the growth.
“More fundamentally, we are talking about crafting a robust implementation. It’s one thing to have a plan and strategy, and it’s another thing to implement the strategy.
“So we are saying we need to awaken the soul of Nigerians, bring everybody on board and see how to push this agenda forward to support government to be able to implement the agenda, if not 100 percent at least 80 percent of the plan.”
The high point of the get-together was presentation of awards to valued contributors.
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