Why Tax Incentives Necessary For Economic Growth – UBA CEO, Alawuba

Oliver Alawuba, the Chief Executive Officer (CEO) of United Bank for Africa (UBA) Plc, has said that one of the requirements to drive economic growth in Nigeria is granting tax incentives and breaks to financial institutions investing in infrastructure and mining.

During his address at the 36th Finance Correspondents Association of Nigeria (FICAN) Seminar held in Abuja, Alawuba highlighted the importance of governmental support through legislation to drive economic transformation in Nigeria.

The UBA chief, who is also the Chairman of the Body of Banks’ Chief Executive Officers, specifically recommended tax benefits for investments linked to bank recapitalisation efforts. He described such measures as essential for Nigeria’s ambitious economic growth targets, including becoming a trillion-dollar economy.

In his presentation, Alawuba identified several priorities for achieving these goals: creating legislation that enables long-term capital mobilisation, developing strategic communication frameworks, investing in capacity building initiatives, and fostering meaningful engagement among key stakeholders.

Alawuba expressed strong support for the Central Bank of Nigeria’s banking recapitalisation policy, characterising it as a significant initiative that would better align the financial sector’s capabilities with the country’s broader economic objectives.

“It is a necessary and strategic step toward achieving the vision of a one-trillion-dollar economy,” he said. “As banks, we view this not only as a compliance requirement but as an opportunity to reimagine our role as economic enablers.”

He stressed that Nigeria’s path to becoming a trillion-dollar economy hinges on the financial sector’s ability to attract investment capital, develop essential infrastructure, provide backing to productive industries, and embrace technological innovation across the economy.

“Strong economies are built on the foundations of strong banks,” he added.

Recognising the importance of the recapitalisation initiative, Alawuba pointed out many critical obstacles that could hinder Nigeria’s broader economic goals.

He cited issues such as inconsistent regulatory frameworks, persistent security challenges, limited access to finance, and inadequate financial inclusion as major concerns.

According to him, it is essential for banks to maintain robust capital reserves to support financing across key traditional sectors like agriculture, oil and gas, and manufacturing, while also fostering growth in newer areas such as financial technology, green energy, and infrastructure development.

“Recapitalisation is beyond a regulatory action. It is a strategic policy designed to prepare the banking sector for the scale, complexity, and global competition that a trillion-dollar economy demands,” he explained.

Alawuba called on Nigerian banks to set the pace in upholding regulatory standards, driving innovation, and championing the nation’s economic progress.

He further appealed to regulatory authorities to offer thoughtful and adaptable oversight, emphasising the need for policies that genuinely support and advance national development objectives.

“Let us reimagine banking as a force for national development and commit ourselves to building an economy that works for every Nigerian,” he concluded.