Business
UBA GMD urges supportive, not punitive, bank supervision at CBN forum
The Group Managing Director of United Bank for Africa (UBA), Oliver Alawuba, has called for a shift in the approach to financial sector oversight, advocating for what he described as “supportive supervision” to enhance the capacity and performance of banks in Nigeria.
Speaking at a Central Bank of Nigeria (CBN) seminar for Finance Correspondents & Business Editors Association of Nigeria titled “Banking Recapitalisation Towards a Trillion Dollar Economy” held at Ibeto Hotel, Abuja, Alawuba emphasized that while regulation is essential, an overly rigid supervisory model could stifle innovation and hinder economic transformation.
“We’re working with the Central Bank, and I believe supportive supervision improves supervision—not necessarily tight or punitive regulation, but a collaborative approach that strengthens institutions,” Alawuba stated.
He urged regulators and stakeholders to learn from global economies such as India, Indonesia, Brazil, and China, which have made significant progress by transitioning from primary economies to value-creating secondary and manufacturing-driven economies.
“India, with over 1.4 billion people, is now the most populous country in the world, yet continues to record strong GDP growth of around 6% annually,” Alawuba noted. “Their focus on services and manufacturing over the last five years has delivered remarkable results. We can learn from that.”
Drawing comparisons with Indonesia and Brazil, he highlighted their success stories in agriculture and manufacturing, citing Brazil’s aerospace industry as an example of local capacity building.
“Even the plane that brought me from Lagos to Abuja was manufactured by Brazilian professionals. That shows how far they’ve come,” he added.
Alawuba underscored the importance of digital innovation and policy-driven support for Nigeria’s tech sector. He advocated for the development of a Nigerian equivalent of Silicon Valley, noting the potential for tech entrepreneurs to flourish if given the right policy environment and financial backing.
“There has to be intentional policy support. We already have e-commerce platforms doing well on their own, but government support is critical for scaling up,” he said.
The UBA chief also touched on the untapped potential in contract manufacturing, citing global examples where major luxury brands outsource production to countries like Turkey and Egypt.
“Some of these brands don’t even have their own factories—they rely entirely on contract manufacturers. Nigeria can tap into this model to build industries and create jobs,” Alawuba said.
He concluded by expressing confidence in Nigeria’s ability to transform its economy if the right strategies are implemented.
“Countries like Morocco began their transformation only a few years ago, yet they’ve made remarkable strides. Nigeria can do even more—we have the resources, talent, and drive. We just need to get it right.”
The event brought together stakeholders from across the financial ecosystem, with discussions centered on strengthening the banking sector’s role in economic development and achieving Nigeria’s vision of a $1 trillion economy.
