Tony Elumelu: Nigeria’s economic growth requires more than short-term interventions

Tony Elumelu, chairman of the United Bank for Africa (UBA), says he believes Nigeria’s economic growth requires more than “short-term interventions”.

Elumelu spoke on Tuesday at the Chartered Institute of Bankers of Nigeria (CIBN) 17th annual banking and finance conference in Abuja.

The conference was themed ‘Accelerated Economic Growth and Development: The State of Play and the Way Forward’.

Elumelu said 2024 has been a tough year for Nigeria, especially, with the persistent surge in inflation that has caused “pain across our economy”.

However, according to Elumelu, achieving economic growth in Nigeria requires collective effort from not just the government but private individuals as well.

“Our country has been hit hard. As a nation, we import more than we export, and with a manufacturing sector struggling and the continued growth of our population, we require more than just short-term interventions,” he said.

“We need a comprehensive strategy to support our vast and diverse population and unlock our potential. Nigeria is rich in resources, natural and human. But, time and time again, we have failed to invest in our people and our value chain.

“And by value chain, I mean not just our oil & gas or manufacturing, I mean power, I mean schools, universities, our institutions.

“All those foundations that provide the ecosystem for a country to succeed. A country that does not address its basic infrastructure needs, is a country that cannot realise its potential.

“At this time of uncertainty, we all – citizens and government – must transform this crisis into an opportunity—a blueprint for creating a thriving, people and investor-friendly environment.”

ACCESS TO POWER, SECURITY, ENTREPRENEURSHIP AS STRATEGIES FOR GROWTH

To address key challenges faced in the country, Elumelu said it was pertinent to address not just the current crisis, but to permanently alter the country’s destiny.

Highlighting key strategies that must be put in place to shape Nigeria’s economic future, Elumelu said there must be access to electricity, security and youth entrepreneurship.

“Development is impossible without reliable access to electricity. Power is a fundamental resource, that impacts every aspect of life—from hospitals to homes and businesses,” the UBA chairman said.

“Nigeria cannot industrialise, and our youth cannot be educated, without ensuring our abundant natural resources are translated into plentiful, robust power for all. A power ecosystem that encourages investment and unlocks our economy.

“To accelerate our progress, we must enable our power sector to guarantee reliable electricity for everyone.

“Also, to protect our people, feed them, attract investment, and foster trade, we must prioritise security. Insecurity has become a national crisis, which must be dealt with decisively and urgently.

“Our people deserve to go to their farms unhindered, live peacefully and conduct their lives and businesses without fear; it is the fundamental right of every citizen.”

The businessman also said Nigerian youths must be incentivised to embrace the challenge of driving economic growth.

Elumelu said by supporting their businesses and creating an enabling environment, small and medium enterprises (SMEs) can be empowered to catalyse the country’s progress during the current transformative period.

On his part, Oliver Alawuba, group managing director (GMD) and chief executive officer (CEO) of UBA, called for collaboration to drive progress in the country.

Alawuba, who is also the chairman, body of banks’ CEOs, and chairman of the 17th annual banking and finance consultative committee, implored participants at the event to “transform learnings to actions”.

“Our collective future depends on the steps we take today to innovate, collaborate, and drive progress,” Alawuba said.

“Let us not merely leave this conference inspired but let us leave it determined to execute.”

Alawuba, who is also the chairman, Bank Directors Association of Nigeria (BDAN), encouraged building a financial sector that powers Nigeria’s economy, lifts the people, and transforms the world.