The Managing Director of United Bank for Africa (UBA), Oliver Alawuba, has issued a strong caution to Nigerians, urging them to abandon the notion that bank loans are free money or gifts. The warning was delivered at the 60th Anniversary Dinner of the Chartered Institute of Bankers of Nigeria (CIBN) in Lagos.
A Call for Responsible Borrowing
Speaking as the Chairman of the Committee of Banks’ Chief Executive Officers, Alawuba emphasised that credit facilities from financial institutions come with a serious obligation to repay. He stressed that banks provide loans to stimulate economic growth, but these funds must circulate back into the system to be lent again to other productive ventures.
"Bank credit is not a gift. Bank credit is not a grant. It is not to fund lifestyle," Alawuba stated clearly. He described credit as a "trust between the bank and the customer" and warned that irresponsible borrowing attitudes ultimately hinder national economic progress. He highlighted the necessity for robust risk management and timely repayments to maintain a healthy financial ecosystem.
Renewed Confidence and Sector Resilience
Alawuba reflected on Nigeria's recent economic trials, including severe naira depreciation and waning investor confidence. However, he pointed to significant improvements, noting that total bank lending has now grown to N46.7 trillion, reaching approximately 10.4 million Nigerians. This surge, he said, is a clear indicator of renewed trust in the economy.
He credited this positive shift to ongoing monetary and fiscal reforms, mentioning that international credit rating agencies are now viewing Nigeria's economic direction more favourably. Alawuba praised policymakers for restoring confidence in the naira, attributing the success to close collaboration between fiscal and monetary authorities.
Looking forward, the UBA boss reiterated that the Federal Government's goal of building a $1 trillion economy is attainable. He, however, noted that achieving this would require:
- Stronger structural reforms
- Enhanced productivity across sectors
- Sustained and consistent growth
He assured that the banking industry would continue to partner with government institutions to support these reforms and ensure a full economic turnaround.
CIBN Addresses 'Japa' Syndrome with Retention Fund
In his own address at the event, the President and Chairman of Council of CIBN, Professor Pius Olanrewaju, commended the resilience of Nigerian banks despite global and domestic pressures. He stated that the sector has continued to bolster its support for the real economy.
Professor Olanrewaju also addressed a critical challenge facing the industry: the impact of the 'Japa syndrome' on banking sector staffing. To combat the brain drain, he announced that the CIBN has established a Human Capital Retention Fund. This initiative is designed to train new entrants into the banking workforce and upskill existing personnel, ensuring the sector retains its expertise and operational capacity.
This development comes amid reports of a strong rebound in foreign capital inflows into Nigeria. Data indicates that capital inflows reached $20.98 billion between January and October 2025, marking a 70% increase compared to the total for 2024—a trend signaling restored international investor confidence in the country's policy direction.
