The National Bureau of Statistics (NBS) reported that Nigeria’s financial services sector contributed N3.8 trillion to the nation’s Gross Domestic Product (GDP) in 2023, marking a 26.5% increase from N3.01 trillion in 2022.
This growth was driven by contributions from financial institutions such as the United Bank for Africa (UBA) Plc. Established in 1949, UBA has evolved into Nigeria’s largest bank and a global financial entity, with operations in 20 African countries and international offices in New York, London, Paris, and Dubai.
Celebrating its 75th anniversary, UBA highlighted its extensive customer base of approximately 45 million and its commitment to supporting SMEs across its markets. Oliver Alawuba, UBA’s Group Managing Director, emphasized the bank’s focus on financial inclusion, noting initiatives like the removal of initial deposit requirements when UBA entered the Ghanaian market in 2005 and the adoption of digital solutions to broaden banking access across Africa.
“Financial inclusion is paramount for UBA, and we are dedicated to increasing the number of Africans with banking relationships. Ensuring that everyone in Africa has a bank account will greatly enhance economic management,” Alawuba stated.
He also praised the Nigerian government’s economic reforms, including the removal of the petrol subsidy and the floating of the naira, despite these measures causing short-term economic challenges like currency devaluation and inflation.
“The government’s decisions on subsidy removal and exchange rate harmonization are positive for the economy. Though there are short-term difficulties, these steps will lead to long-term economic improvement,” Alawuba added.
Muyiwa Akinyemi, UBA’s Group Deputy Managing Director, echoed these sentiments, acknowledging that while current policies might impact both long- and short-term investor plans, they are essential for stabilizing the economy and currency.
“Nigerian banks are collaborating with monetary authorities to stabilize the economy and the currency. A stable currency and economy are in everyone’s best interest, despite the current high inflation rates,” Akinyemi noted.
He identified financial inclusion as a major challenge for the Nigerian banking sector, stressing that UBA will continue to support government initiatives and its customers to foster economic growth.
“The primary challenges for Nigerian banks today are penetration and providing alternatives to traditional banking services. In a developing economy like Nigeria, banks are often involved in infrastructure development to support banking services,” Akinyemi explained.
Despite these hurdles, Akinyemi expressed optimism about the Nigerian consumer banking sector, highlighting its resilience and continued growth amidst economic challenges.
“Nigeria’s consumer banking market has shown resilience, growing despite reduced purchasing power. UBA remains committed to providing unique banking solutions and enhancing financial capability to improve customer purchasing power and support the distribution business across Nigeria,” he added.
Nigeria is currently experiencing its most severe cost of living crisis in three decades. While the Central Bank of Nigeria (CBN) is implementing measures to restore fiscal and monetary stability, UBA emphasizes the importance of supporting Small and Medium-sized Enterprises (SMEs) as crucial for economic growth and job creation during these challenging times.
