Monday, December 1, 2025 - The Chairman of the Committee of Banks’ Chief Executive Officers, Oliver Alawuba, has warned that bank credit must not be mistaken for a gift or a grant, stressing that responsible borrowing and disciplined repayment are critical to Nigeria’s economic recovery and long-term growth.
Speaking at the Chartered Institute of Bankers of Nigeria (CIBN)
60th Anniversary Dinner held in Lagos, Alawuba reflected on Nigeria’s recent
financial strains, particularly the severe depreciation of the naira and the
erosion of investor confidence that marked the country’s most turbulent
economic periods.
He recalled times when the currency lost substantial ground,
leading to uncertainty across markets and institutions.
“There was a time when the naira depreciated sharply and confidence
almost disappeared,” he said. “But today, the picture is changing. Bank lending
now stands at N46.7 trillion, reaching 10.4 million Nigerians. This shows
progress, and we must consolidate on it.”
Alawuba attributed the renewed confidence in the banking sector and
the currency to ongoing reforms in monetary and fiscal policy, noting that
global credit rating agencies have also begun to take a more positive view of
the Nigerian economy.
“You have restored confidence in the naira,” he said, addressing
policymakers and regulators present at the event. “These achievements are the
result of bold reforms and the collaboration we now see between monetary and
fiscal authorities. We cannot thank you enough.”
He emphasized that Nigeria’s path toward a $1 trillion economy, a
goal articulated by the federal government, is realistic but requires deeper
structural reforms, improved productivity, and sustained growth across key
sectors.
Credit Must Drive Productivity—Not Consumption
The banking sector, he said, is committed to supporting productive
lending but requires borrowers to understand their obligations.
“Bank credit is not a gift. Bank credit is not a grant. It is not
to fund lifestyle,” Alawuba declared, adding, “Credit is a trust between the
bank and the customer—for the benefit of the financial system and the wider
economy. Banks lend money for economic growth, and the money must return so it
can be lent again.”
He warned that irresponsible borrowing undermines economic
progress, adding that strong risk management frameworks and timely repayments
are essential for the sustainability of the sector.
Alawuba reaffirmed that the banking industry will continue to work
closely with government and regulatory institutions to ensure a full turnaround
of the economy.
“We are going to work with the authorities so that the complete
turnaround of this economy can be achieved,” he said, adding, “The journey
ahead is still long, but with deeper reforms, higher productivity, and strong
leadership, Nigeria will get there.”
Professor Pius Olanrewaju, President and Chairman of Council of the
CIBN, said despite persistent global and domestic headwinds, the Nigerian
banking industry had shown a remarkable resilience, adapting in ways that
surprised even seasoned economists. Banks were stepping up, strengthening the
nation’s capacity to finance the real sector and support economic recovery.
He spoke about the growing challenge of the “Japa syndrome” in the
bank sector, saying the institute had created the Human Capital Retention Fund:
a lifeline designed to train new entrants and upskill existing staff.
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